Dirt Report · 6 July 2025

Should Telcos be afraid of Starlink? | Dirt Report

Starlink is changing the broadband market by providing internet in locations where mobile networks and fixed-line services can be difficult or expensive to deploy. Its low Earth orbit satellites offer lower latency than traditional satellite services, while partnerships with telcos such as Telstra and Optus are helping extend mobile and broadband coverage. The third-generation Starlink kit also brings a simpler flat dish, Wi-Fi 6 and lower idle power use.

In this article

The short version

Key points

Starlink’s main disruption is coverage, particularly in rural, remote and fringe urban areas.
The service uses low Earth orbit satellites, with typical latency reported in the video of around 30 to 70 milliseconds during testing.
Telstra is reselling Starlink broadband and using the network for satellite texting on selected mobile plans.
Optus has partnered with SpaceX for satellite SMS and is working towards broader voice and data coverage.
The third-generation kit costs $548 in Australia at Bunnings, according to the video, and uses an electronically steered flat dish instead of motors.

Why Starlink is a challenge for telcos

Starlink’s strongest advantage is not simply download speed. It is the ability to provide internet where traditional mobile networks, fixed-line services and satellite NBN connections may be limited or unavailable. With power and a clear view of the sky, users can connect from rural and remote locations, including areas with poor mobile coverage.

The service uses a constellation of low Earth orbit satellites. The video states that latency is generally around 30 to 50 milliseconds, compared with about 600 milliseconds for traditional geostationary satellite services. That makes Starlink suitable for streaming, video calls and gaming, although performance varies by location and plan.

Telcos are partnering rather than ignoring it

Telcos are responding by incorporating Starlink into their own offerings. Telstra has launched satellite internet powered by Starlink, reselling kits and capping speeds at around 50 megabits per second for consistency. The service can also be bundled with home phone lines, providing rural broadband without new fibre construction.

Telstra has also introduced satellite texting for compatible phones. The video says this is included at no extra charge on selected mobile plans at the time of recording. Optus has partnered with SpaceX for satellite SMS and is working towards broader voice and data coverage. It is also reselling Starlink to enterprise customers with professional installation and support.

The approach is also being used overseas. The video cites T-Mobile in the United States, KDDI in Japan and Rogers in Canada as examples of carriers working with SpaceX. These arrangements allow telcos to extend coverage without building additional towers, while Starlink gains access to established customer bases.

What the third-generation kit changes

The third-generation Starlink kit reviewed in the video was purchased from Bunnings for $548. It replaces the earlier motorised dish design with a flat, rectangular dish that uses electronic phased-array beamforming to track satellites. The lack of moving parts should reduce potential points of failure, while the dish can be positioned using a simple kickstand or an optional mount.

The kit includes a separate power supply and router. The router supports Wi-Fi 6 and has two Ethernet ports. The video states that the system draws about 85 watts, with observed usage of 76 watts, which is relevant for users operating from batteries or solar power. The hardware is described as having waterproof connectors, and the dish is IP67 rated.

Setup remains largely plug and play: power the system, wait a minute or two and connect. A smaller mobile or Mini version is also available, but the video describes it as having slower speeds and a weaker signal than the standard kit.

Real-world performance on the Roam plan

Testing was conducted on Starlink’s Roam plan, which costs $80 per month according to the video. The plan can be used at home, while travelling or at a campsite, and can be paused when it is not needed. Roam users are deprioritised compared with fixed residential customers, so speeds can fall when the network is busy.

Starlink states expected Roam speeds of 5 to 50 megabits per second down and 2 to 10 megabits per second up, with latency below 100 milliseconds. During testing in rural Western Australia, download speeds ranged from 20 to 100 megabits per second, usually sitting between 50 and 80 megabits per second. Upload performance was described as suitable for video calls, YouTube uploads and cloud synchronisation. Latency ranged from 30 to 70 milliseconds.

Rain caused a few brief speed reductions and dropouts during testing, but nothing described as significant. The video also notes that the headline speeds of up to 450 megabits per second were not achieved in Australia, despite being reported as possible in other regions.

TechManPat’s conclusion

In my view, telcos should be worried because Starlink delivers broadband in places they cannot easily serve, but their partnerships are a sensible response. I think the bigger risk comes if SpaceX turns Starlink into a full mobile carrier for data, calls and SMS. That could make Starlink the default option in many locations, although it could also create a more concentrated market until competing satellite services become available.

Source note

This knowledge-centre summary is based on the linked TechManPat video and reflects the information available when it was published. Check current pricing, availability and policies before acting.