Optus courts other satellite deals after Elon Musk’s Starlink failure to launch
As Telstra beat its rivals in the satellite race and Optus’s much-hyped Starlink deal stalls, the telco has been forced to seek new partners in the coverage war.
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Optus is considering partnering with other satellite providers after its much-hyped deal with Elon Musk’s Starlink became bogged down in delays.
Telstra has eclipsed Optus to become Australia’s first major telco to provide satellite direct-to-handset text messages.
Vodafone owner TPG Telecom has also successfully trialled a similar service, though it will be a while until it is available to customers.
Optus had hoped to launch such a service with Starlink late last year but it has since faced indefinite delays, with the telco citing regulatory hurdles. The Australian understands Optus is exploring joining with other providers — as well as Starlink — as a coverage war between Australia’s top three telcos intensifies and Mr Musk’s relationship with Donald Trump implodes.
An Optus spokesperson said: “We remain committed to using low earth orbit (LEO) satellite direct-to-mobile technology to connect our customers in the best way possible.
“Optus is working with Starlink among others to determine the best possible customer experience and will confirm when any decisions are made.
“We look forward to working with the Federal Government on the Universal Outdoor Mobile Obligation intent and the connectivity solutions this may provide for Australians as LEO sat technology continues to evolve.
“We are committed to working with Government and retailers through the UOMO to try and expand triple-0 access across the country; enhance mobile resilience during disasters and power outages; and continue to reduce mobile black spots.”
Satellite services such as Telstra’s (which utilises Starlink satellites) and TPG’s (which uses Starlink rival Lynk’s low-orbiting satellites) aim to provide communication services in black spots across Australia for people travelling long distances, working rurally or when standard communications are down following a natural disaster.
Government-owned NBN is also exploring the use of LEO satellites to provide coverage; its Sky Muster offering received tepid interest.
Chief executive Ellie Sweeney in February said NBN Co was “well progressed” on requests for information to develop a wholesale LEO service.
Starlink internet services have become a darling in the regions, where it far outperforms major players with typical download speeds of between 100-350mbps compared to the 25mbps offered by the cheaper NBN.
Lower latency and unlimited data plans on offer from Starlink have also aided its surge among rural Australians looking for better internet. In some parts of rural Australia, NBN is not even available.
When first announcing the partnership with Starlink in October 2024, Optus enterprise vice president Ben Vella said satellites could “essentially, in some instances, save lives where you can now communicate and co-ordinate better.”
Optus had said it would also sell Starlink hardware and installation services following the collapse of the Optus home installation ‘O-Team’.
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Originally published as Optus courts other satellite deals after Elon Musk’s Starlink failure to launch
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