TPG strikes satellite deal with Lynk Global to ‘eliminate mobile dead zones’

Commercial telcos are steaming ahead with a flurry of satellite deals to bolster coverage across rural and remote Australia.

TPG Telecom has signed a partnership with US satellite company Lynk Global to provide “near-100 per cent mobile coverage” across Australia, “eliminating dead zones”.

The nation’s third biggest telco said the non-exclusive agreement will connect standard mobile phones to Lynk’s constellation of low earth orbit satellites, closing coverage gaps in rural and remote parts of the country.

Optus is planning similar coverage under partnership with Elon Musk’s SpaceX. Telstra is also “exploring and testing” what is known as direct to handset satellite technology, announcing earlier this year it was working with Lynk, SpaceX subsidiary Starlink and others to take advantage of the “still evolving” technology.

TPG chief technology officer Giovanni Chiarelli said low earth orbit (LEO) satellites had the potential to “transform connectivity right across Australia”.

“We are excited to collaborate with Lynk Global to deliver mobile connectivity in the

hardest-to-reach places in Australia,” he said.

“Australia’s vast geography and sparse population pose unique challenges for deploying commercially viable mobile networks in remote and regional communities.

“Combining innovative technologies like sat2phone with our mobile network would bring much needed connectivity to those living and working in remote and rural locations and could play a critical role in delivering lifesaving services.”

Elon Musk’s SpaceX and Starlink has signed deals Optus and Telstra.

Lynk provides cell broadcast (emergency) alerts, and text messaging overseas. In Australia, Lynk is testing SMS and has plans to introduce voice and limited data services in the future.

Mr Chiarelli said satellite-direct-to-mobile-phone technology acted as an extension, not a replacement for TPG’s existing terrestrial-based network. TPG has proposed a separate $1.6bn network sharing agreement with Optus the Australian Competition and Consumer Commission is set to decide on next month.

Lynk Global VP, Asia-Pacific, James Alderdice said more than two thirds of Australia’s

landmass is currently without mobile coverage.

“Lynk is thrilled to partner with TPG Telecom to extend its network with our sat2phone service. This vast terrain (is) an ideal target to deliver mobile connectivity directly from Lynk’s LEO satellites as a supplement to TPG’s extensive terrestrial mobile network.”

TPG is set to start a text message trial with Lynk in 2025.

Optus announced last year it was partnering with SpaceX to provide coverage to “100 per cent of Australia”.

Under the agreement, Optus said it would expand the reach of customers’ mobile connectivity to include the 60 per cent of Australia’s land mass which currently has no mobile coverage. This will be achieved through a phased rollout of SpaceX’s satellite capability, starting with SMS in late 2024, with voice and data to follow in late 2025.

More than 60 per cent of Australia’s landmass is without mobile coverage. Deals with satellite providers are set to change that.

But, Telstra chief executive Vicki Brady said earlier this year under Telstra’s satellite agreements with various vendors, no “definitive timelines have been set”.

“What’s happening in that space is important, and the ability to further expand our mobile coverage as this technology matures, we see as an area we should be in, we should be at the forefront of with partners bringing those options and choices,” Ms Brady said.

“Obviously there’s a lot of innovation happening in the LEO satellite environment at the moment, and it’s exciting to see. So, we’re working with a range of satellite providers.

Telstra CEO Vicki Brady says there are no definitive timelines on the telco’s satellite trials.

“The timelines on those things, it’s fair to say the technology is still evolving. And so there’s no definitive timelines yet, but I think incredibly important we’re in that space, we’re working with OneWeb, we’re working with Starlink when it comes to our broadband services, and we’ve got an enterprise product in market.”

While commercial telcos are ploughing ahead with entering satellite partnerships, the government-owned NBN Co has attracted criticism from the Opposition over sales “falling through the floor”.

In the half-year to December 31, NBN reported “about $1.06bn negative free cash flow”, which Senator Dave Sharma said at a Senate committee in June reflected a “deterioration” of about $400m — or 70 per cent — in a year.

Senator Sarah Henderson said customers in regional areas were “pulling their hair out” over slow broadband speeds, which was damaging small businesses, and prompting them to sign up with competitors, including Starlink.

But, NBN interim chief executive Philip Knox had a more optimistic view, saying it was the “nature of these infrastructure builds”.

“The heavy investment is in the early days, and then once that investment is complete is when the cash flows turn positive,” Mr Knox told senators.

“It’s a question of, when do we stop the investments? And at the moment, the investments are all about lifting that digital capability for Australia. So these investments in fibre, which provides us with savings further down the track because of the cost of servicing legacy technologies.”

NBN chief development officer for regional and remote areas Gavin Williams added: “as the marketing adage goes, if there is a new hippopotamus in the zoo, customers will go and take a look”.

“It’s realistic to expect, when there are significant market shifts and new entrants that market shares will move around,” he said.

Originally published as TPG strikes satellite deal with Lynk Global to ‘eliminate mobile dead zones’