In a Groundbreaking Agreement, VEON and Starlink to Bring Starlink Direct-to-Cell Satellite Connectivity to Kyivstar Customers
Rhea-AI Summary
VEON (Nasdaq: VEON) announces that its Ukrainian subsidiary Kyivstar has signed an agreement with Starlink to introduce direct-to-cell satellite connectivity in Ukraine. The service is expected to launch in Q4 2025, initially offering SMS and OTT messaging functionality, with plans to expand to voice and data services later.
This partnership will make Ukraine among the first countries to have Starlink's direct-to-cell service, enhancing the country's connectivity resilience. Kyivstar has invested significantly in 4G network expansion and energy redundancy since the war began. VEON has invested over USD 10 billion in Ukraine since 2013 and committed an additional USD 1 billion for recovery and reconstruction from 2023 through 2027.
Positive
- Strategic partnership with Starlink positions VEON as an early adopter of satellite-to-cell technology
- Expansion of service coverage beyond traditional network limitations
- USD 1 billion commitment for Ukraine recovery and reconstruction (2023-2027)
- Recognition as top international investor in Ukraine for 2022 and 2023
Negative
- Service launch delayed until Q4 2025
- Initial service to SMS and OTT messaging only
News Market Reaction
On the day this news was published, VEON gained 3.16%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Dubai and Kyiv, 30 December 2024: VEON Ltd. (Nasdaq: VEON), a global digital operator (“VEON” or “VEON Group”), today announces that Kyivstar, its digital operator in Ukraine, has signed an agreement with Starlink, a division of SpaceX, to introduce groundbreaking direct-to-cell satellite connectivity in Ukraine.
Upon its launch, the service will make Ukraine one of the first countries to have the game-changing Starlink direct-to-cell service, enhancing the resilience of the country’s connectivity landscape. Kyivstar anticipates launching Starlink direct-to-cell services with SMS and OTT messaging functionality in the fourth quarter of 2025 for Kyivstar customers, and plans to expand to voice and data in later stages.
“Kyivstar has done a tremendous job in investing in Ukraine’s 4G connectivity, expanding coverage to remote areas and increasing the energy resilience of its network. Today’s announcement helps us take our commitment to Ukraine’s connectivity to the next level, exponentially amplifying the resilience of our services with satellite connectivity. We are excited to work with Starlink to make Ukraine one of the leading countries in the world to have direct-to-cell services, and we look forward to exploring the opportunities across our markets that are home to 520 million people,” said Kaan Terzioglu, VEON Group CEO.
“Kyivstar has been the backbone of Ukraine’s resilience throughout the war, and we are committed to leaving no stone unturned to keep Ukraine connected. Our collaboration with Starlink is a game-changer in our journey towards achieving our ‘LTE everywhere’ ambition. We are humbled to be the operator that serves its customer with exceptional services, and the company that brings the invaluable capabilities of global technology giants to the people of Ukraine through our international partnerships,” said Oleksandr Komarov, Kyivstar CEO.
With its dedication to expanding 4G coverage to remote areas of Ukraine and maintaining the resilience of connectivity and digital services during energy blackouts, Kyivstar has invested significantly in its 4G network, spectrum and energy redundancy since the beginning of the war. With access to Starlink direct-to-cell technology, Kyivstar customers will benefit from satellite-powered connectivity even when the terrestrial network is unable to service an area.
VEON, Kyivstar’s parent company, has invested more than USD 10 billion in Ukraine since 2013 and has committed USD 1 billion to the country’s recovery and reconstruction from 2023 through 2027. VEON, through Kyivstar, was named the top international investor in Ukraine for 2022 and 2023 by Forbes Ukraine and NV Ukraine.
“VEON’s pioneering spirit has always put us at the forefront of serving the underserved in frontier markets. Working with Starlink, we will now leverage space technology to bridge the connectivity gaps to extend our reach far beyond the current 160 million people we serve. This agreement marks a transformative year for VEON, from relocating our headquarters to Dubai to focusing all our trading on Nasdaq in New York and ultimately to reinforcing our commitment to innovation and growth in the regions that need it the most” said Augie K Fabela II, Chairman and Founder of VEON.
About Kyivstar
Kyivstar is the largest telecoms operator in Ukraine with over 23 million mobile subscribers and over 1 million home internet subscribers. As Ukraine’s market-leading operator, the company has maintained network availability of above
About VEON
VEON is a Nasdaq-listed digital operator headquartered in Dubai that provides connectivity and digital services to nearly 160 million customers. Operating across six countries that are home to more than
About Starlink Direct to Cell
As the world’s leading provider of launch services, SpaceX is leveraging its deep experience with both spacecraft and on orbit operations to deploy and operate the world’s most advanced constellation of satellites to provide connectivity globally, including directly to most cellular devices. Starlink satellites with Direct to Cell capability have an advanced eNodeB modem onboard that acts like a cellphone tower in space, allowing network integration similar to a standard roaming partner. Direct to Cell enables connectivity in remote regions, providing peace of mind when customers need it most. Direct to Cell works with existing LTE phones wherever you can see the sky. No changes to hardware, firmware, or special apps are required, providing seamless access to text, voice, and data. Learn more at https://www.starlink.com/business/direct-to-cell Follow Starlink on X https://x.com/Starlink
Disclaimer
This release contains “forward-looking statements”, as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical facts, and include statements relating to, among other things, VEON’s technology strategy, commercial plans and partnerships. Forward-looking statements are inherently subject to risks and uncertainties, many of which VEON cannot predict with accuracy and some of which VEON might not even anticipate. The forward-looking statements contained in this release speak only as of the date of this release. VEON does not undertake to publicly update, except as required by U.S. federal securities laws, any forward-looking statement to reflect events or circumstances after such dates or to reflect the occurrence of unanticipated events.
Contact Information
VEON
Hande Asik
Group Director of Communication and Strategy
pr@veon.com
FAQ
When will VEON's Kyivstar launch Starlink direct-to-cell services in Ukraine?
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