KUALA LUMPUR, 10 September 2025 — SpaceX’s plan to acquire EchoStar’s AWS-4 and H-block spectrum licences for an estimated US$17 billion could accelerate its entry into the Direct-to-Cell (D2C) market, allowing ordinary 4G and 5G smartphones to connect directly with Starlink satellites. But analysts stress that rather than disrupting traditional networks, the service is likely to function as a complement to existing operators, especially in regions where connectivity remains patchy.
According to a report by Maybank Investment Bank (Maybank IBG), securing spectrum would lessen Starlink’s reliance on third-party operators and provide the independence needed to scale D2C services globally. Unlike the current Starlink model that requires dedicated user terminals, the new approach uses terrestrial spectrum integrated with low-earth-orbit satellites to deliver voice, messaging, and eventually broadband-grade data. This lowers adoption barriers and expands the potential customer base in underserved rural and remote areas.
Maybank IBG noted, however, that national spectrum regulation remains a hurdle, meaning cooperation with local operators will be essential. “We view D2C as a complementary solution rather than a direct substitute for terrestrial networks,” the bank said. “Licensed spectrum is tightly controlled at the country level, so partnerships remain the most viable global path forward.”
ASEAN Implications
The research highlights Indonesia and the Philippines as the most likely beneficiaries in Southeast Asia. Both countries face persistent coverage gaps across dispersed islands and rural areas despite headline 4G penetration rates. Indonesia’s coverage reaches about 97% of the population but still leaves outer islands underserved, while the Philippines continues to struggle with uneven rural connectivity.
By contrast, markets such as Singapore, Malaysia, and Thailand already enjoy near-universal coverage, meaning the incremental benefit of D2C will be more limited, with the technology filling only niche gaps.
Potential Upside in Australia
Beyond ASEAN, Australia could also see meaningful gains. Maybank IBG singled out Optus, which lags behind Telstra in regional coverage but competes on price. By layering D2C capability onto its existing urban-focused network, Optus could extend reliable service to remote communities, narrowing the gap with Telstra and strengthening its competitive position.
Complement, Not Replacement
Despite its promise, analysts caution that satellite-to-smartphone connectivity will not displace traditional mobile networks. D2C cannot yet provide reliable in-building coverage, tunnel access, or underground connectivity, which will continue to require terrestrial infrastructure. Instead, the technology is seen as a strategic complement—helping smaller operators close rural gaps and counter the pricing power of larger incumbents, while offering customers improved continuity of service in areas where mobile signals traditionally fall short.
For ASEAN telcos, Starlink’s direct-to-cell ambitions may be less a threat and more an opportunity to collaborate—extending networks across hard-to-reach geographies without duplicating costly terrestrial builds.
