Direct-to-cell satcom tech unlikely to disrupt terrestrial telco business

T-Mobile, Starlink to launch satellite-based connectivity, initially in the US, by mid-2025

- SUBHAYAN CHAKRABORTY

Even if Starlink picks an Indian telecom operator to provide direct-to-cell satellite coverage on mobiles, the service will likely only complement traditional telecom networks in the near term, given the pricing pressures of satellite communication (sitcom), analysts say.

Starlink's partnership with T-Mobile to provide direct-to-cell satellite coverage on mobiles, initially in remote locations in the US, will begin by mid-2025, an analyst note by Bernstein pointed out on Thursday. It said Starlink is offering telcos using its direct-to-cell capability the chance to enjoy reciprocal global access in partner nations.

Separate deals with Starlink announced by telecom operators Bharti Airtel and Jio earlier this week primarily cover the distribution of Starlink equipment and services in India for Airtel and Jio customers, but have kept options open on further collaboration. They call for exploring how Starlink services can expand and enhance Airtel's existing network, and evaluate complementary areas of cooperation to leverage Jio and Starlink's infrastructure.

"Starlink's direct-to-cell service is more likely to complement traditional telecom networks like Reliance and Bharti Airtel in the near term rather than fully replace them. While Starlink direct-to-cell offers unique capabilities, its high costs, regulatory challenges, and niche focus limit its ability to threaten Reliance Jio or Bharti Airtel's core markets in India," Bernstein said.