A train of Starlink communications satellites forms a single file of lights crossing the night sky, at Cape Matxitxako, Bermeo, Spain February 13, 2023. REUTERS/Vincent West
(Reuters) -Elon Musk's Starlink, a subsidiary of SpaceX, secured its largest direct-to-cell deal yet with telecoms group Veon, granting access to over 150 million potential customers, both companies said on Thursday, as competition in satellite-to-smartphone connectivity intensifies.
Direct-to-cell technology allows smartphones to connect to satellite networks in space that beam telephone signals back to Earth.
The market has gained momentum with significant investment aimed at closing coverage gaps in remote areas.
The deal will enable Veon to integrate Starlink's service into its networks, starting with operators Beeline in Kazakhstan and Kyivstar in Ukraine. Veon also operates in Pakistan, Bangladesh and Uzbekistan.
Kyivstarwill launch the service in the fourth quarter of 2025, with Beeline following in 2026. The Kazakhstan agreement was announced during President Kassym-Jomart Tokayev's visit to Washington on Thursday.
"This is the biggest partnership in terms of addressable customer base in the world," Ilya Polshakov, Kyivstar's new business director who spearheaded Veon's satellite connectivity efforts, told Reuters. "There will be more announced soon."
The partnership remains nonexclusive, allowing Veon to pursue agreements with other satellite providers. CEO Kaan Terzioglu told Reuters in August that Veon was in discussions with Amazon's Project Kuiper, AST SpaceMobile, and Eutelsat OneWeb.
"These plans with other players will be in 2027, 2028. I don't want to wait. I want to develop business today," Polshakov said.
Competitors including AST SpaceMobile and Amazon's Project Kuiper are advancing their satellite constellations, with initial commercial launches anticipated in 2026.
AST has already signed deals with Verizon and Saudi carrier STC.
EchoStar said on Thursday that it would expand its previous deal with SpaceX to sell additional U.S. airwave rights to Starlink for $2.6 billion, allowing Musk's company to access more customers.
Starlink has more than 7 million users globally and partners with telecom operators in 11 countries, including T-Mobile in the U.S. and Rogers in Canada, operating over 8,000 satellites, of which 650 are dedicated to direct-to-cell services.
(Reporting by Gianluca Lo Nostro and Leo Marchandon in GdanskEditing by Matthew Lewis)
