Telstra partners with Elon Musk’s Starlink

The company will be the first telco globally to offer Starlink rural broadband and voice services, in a fresh blow to the NBN.

Telstra will be the first telco globally to offer Starlink rural broadband and voice services, in a fresh blow to the NBN. Picture: Nicole Cleary

Telstra has signed an agreement to become the first telco globally to offer rural broadband and voice services with Elon Musk’s satellite provider Starlink.

Expected to launch in late 2023 with pricing to be confirmed, Telstra chief executive Vicki Brady said the offering would provide additional connectivity options for people and businesses where distance and terrain made it difficult to reach with existing networks.

Currently, customers wanting Starlink services need to deal with the company directly. Starlink is thought to have around 100,000 Australian customers, and 1.5 million customers globally.

“Telstra is always looking to invest in new and better connectivity options for our customers. We know that collaborating with the right partners is one of the best ways to help unlock a digital future, in this case for people in rural and remote Australia looking for an improved voice or broadband service,” Ms Brady said on Monday.

Elon Musk’s satellite provider Starlink has partnered with Telstra. Picture: Angela Weiss/AFP

“Our teams have been out across the country testing and trialling Low Earth Orbit satellite technology to ensure we understand where it’s the best solution for our consumer and business customers.

“What will set our offer apart is the addition of Telstra voice service, a professional install option and the ability to get local help with your set-up if needed.

“In addition, this agreement will also provide connectivity options for our business customers in Australia and overseas, as a higher bandwidth business grade option in areas without fixed and mobile connectivity.”

Starlink, a low earth orbit satellite system owned by Elon Musk’s SpaceX, was launched in Australia in 2021 and offers unlimited data for $139 per month along with a hardware fee of about $900. Its speeds are similar to that of NBN’s 100Mbps plans.

Statistics in February previously reported by The Australian showed some 10,000 users ditched NBN’s satellite products over the last 12 months, switching to rival options including Starlink.

NBN critics have questioned whether NBN Co’s Sky Muster service could essentially be made obsolete by other options like Starlink, which have proved attractive to some rural customers who were previously experiencing poor speeds and struggling with strong internet coverage.

Angus Kidman, utilities analyst at comparison group Finder, pointed to research showing that 45 per cent of Australians in regional areas said their internet had lagged or stopped working at least once this year while working from home.

“It’s still early days but Telstra’s pricing information will be key to deciding just how good its satellite internet plan will be,” Mr Kidman said.

“What’s interesting is that you have to buy a voice service, which isn’t something Starlink itself offers – and also gives Telstra a reason to charge more than normal Starlink.

“Telstra positions itself as a premium service, so I’d expect the costs to be higher than DIY installations which is what Starlink currently offers.

“Anecdotally, most folks in highly remote areas wouldn’t be fazed by putting a dish on their roof by themselves, but the service could have appeal for some users.”

Mr Kidman said that given Starlink has been promoting $199 installs recently, Telstra will need to make sure its deal seems competitive.

“Internet dropouts can be a huge pain, especially if you’re working from home. If you’re experiencing delays to your internet often, it’s worth looking into switching plans.”

Telstra shares last traded at $4.30.