In our research, we have theoretically studied a device that can serve as a modulating retroreflector (MRR) for applications in the visible spectrum. The device is comprised of a nanocomposite of a ferroelectric thin-film embedded with noble metal nanoshells. In comparison to the nanospheres, the nanoshells provide more flexibility in the design of the device. This MRR can be used in asymmetric communication links as an optical transceiver for mobile devices. The main conclusion from our study is that a nanocomposite-based MRR can save power, complexity, dimensions, and weight in comparison to standard communication links. This fact is very important for mobile platforms.