Telstra Joins Forces with SpaceX to Transform Regional Connectivity

A Telstra store on Melbourne's central business district in Melbourne, Australia on June 20, 2018. William West/AFP via Getty Images

Australia’s leading telecommunications company, Telstra, has announced a collaboration with Elon Musk’s SpaceX to provide satellite connectivity to rural and remote regions.

The company now becomes the second major Australian telco to enter the direct-to-handset satellite communications space, following Optus’s earlier announcement.

The partnership will leverage SpaceX’s Starlink-to-Mobile technology, enabling satellite broadband connectivity directly to compatible mobile phones, particularly in areas with limited traditional network coverage.

Shailin Sehgal, Telstra’s Group Executive of Global Network and Technology, highlighted the initiative’s impact.

“The collaboration would enable Telstra customers to send and receive SMS on a compatible mobile phone in most parts of Australia where there is a direct line of sight to the sky,” he said about the new connectively to rural and remote regions where mobile network signals are often unavailable.

Interestingly, the connection between Telstra and Elon Musk extends beyond telecommunications.

Robyn Denholm, chair of Tesla, where Musk serves as CEO, is a former finance and operations head at Telstra.

This shared network of innovation and leadership hints at further synergies between the two companies in the future.

Advancing Satellite-to-Handset Connectivity

Once considered a distant dream, direct satellite-to-handset connectivity has been inching closer to reality.

Telstra has run several pilot programs across the country to test this emerging technology, becoming the second major Australian telco to embrace it, following Optus’s earlier announcement.

Optus promised to deliver text messages via satellite by late 2024 but missed the deadline. In November 2024, the company pivoted to offer “Satellite Internet for Business,” reselling Starlink’s high-speed internet to enterprises and small businesses.

However, Telstra’s new partnership with Starlink marks a leap forward, starting with SMS capabilities and preparing for broader voice and broadband services.

Pioneering Satellite Solutions in Australia

This is not Telstra’s first foray into satellite technology.

In July 2023, the company became the world’s first telco to resell voice and broadband services via Starlink.

Telstra CEO Vicki Brady emphasised the importance of collaboration in delivering innovative connectivity solutions.

“Telstra is always looking to invest in new and better connectivity options for our customers. Collaborating with the right partners is one of the best ways to help unlock a digital future,” she said.

While Telstra and Optus continue to innovate in this space, New Zealand’s One NZ has already launched Starlink-powered direct-to-handset services, leveraging a constellation of approximately 300 Low Earth Orbit (LEO) satellites.

Despite its pioneering efforts, the service experiences minor delays, with most text messages being delivered within three minutes and some taking up to ten minutes.