Starlink’s disruptive direct-to-cell service is accelerating its hold in the telecommunications market, putting mobile network operators under pressure to rethink their strategies or risk obsolescence.

Elon Musk’s internet company’s D2C technology, launched globally between 2024 and 2025, allows users with 4G and 5G smartphones to connect directly to Starlink satellites for text, voice, and data, bypassing terrestrial mobile networks.

Starlink’s meteoric rise already disrupted Nigeria’s fixed broadband sector, delivering high-speed, low-latency internet, making it the country’s second-largest ISP, with over 65,000 subscribers.

“The simple answer is yes, D2C poses a threat to traditional telcos in the long term,” a former CEO of a Nigerian telecom company and a UK-based renewable energy expert, Ernest Akinlola, told The PUNCH.

“It’s compatible with existing smartphones, direct from satellite, and unencumbered by terrestrial infrastructure. MNOs will need to start partnering with Starlink to provide bundled services to retain customers.”

Although satellite bandwidth currently lags behind 4G in certain areas, experts predicted the gap is narrowing quickly. With improving speeds and evolving devices, the telecom landscape is increasingly moving to space, forcing companies to adapt or fall behind.

“While current satellite bandwidth is limited, it’s advancing quickly,” the telecom executive noted. “Soon, it will be at par with 4G services, making it a viable alternative for consumers.”

Major tech companies, such as Google and Meta, are also impacting the telecom sector by creating new authentication methods that don’t rely on traditional SMS-based one-time passwords.

These OTPs, which telcos have used for user verification, have been a source of revenue for telecom companies. However, as these tech giants introduce alternative methods for authentication (such as app-based or email verification), telcos could lose a significant income stream.

“Consumers are gradually shifting away from SMS, and this is another threat to MNO revenues,” Akinlola said. SMS has been a reliable income stream for telcos, and its decline compounds the financial strain posed by Starlink’s market incursion.

On the other hand, the big players MTN and Airtel are not folding their arms. Both have initiated partnerships with low-Earth orbit satellite firms like OneWeb to extend broadband access.

Last year, MTN and Airtel partnered with low-Earth orbit satellite providers like OneWeb to extend their own satellite broadband offerings, aiming to close connectivity gaps. Airtel, for example, has deployed satellite dishes for Eutelsat OneWeb’s LEO service in Lagos and is training local teams to manage the new technology.

Historically, operators have focused on terrestrial infrastructure, fibre optics, towers, and base stations, especially in dense urban areas. However, the high cost of rural expansion makes satellite a more viable solution.

“Investing in satellite technology will address deficiencies in network coverage and improve access, particularly in rural areas,” Hotspot Network Limited’s CEO, Morenikeji Aniye, told The PUNCH in March.

“Satellite capacity is very key, and that’s why we are working on solutions to enhance connectivity across the country,” he said. (The PUNCH)