Can Starlink's Direct to Cell turn the tide for Pakistan's telecom sector?

Over the past year, there has been an enormous hype surrounding Starlink in Pakistan, where it has become one of the most widely discussed topics in the country, overshadowing previously popular topics such as 5G. The people of Pakistan have displayed immense enthusiasm for Starlink and eagerly await government’s approval, which would allow Musk’s company to commence its services in the country. On the contrary, major stakeholders of the telecommunications industry have remained anxious of Starlink’s entry into the local market and even expressed skepticism about its success including several mobile telecom operators.

Nevertheless, there has been a development recently, which might help ease the tension for the stakeholders of the telecom industry, at least the mobile telecom operators, who have remained wary of the introduction of Starlink. The company Starlink has forged a partnership with T-mobile to provide Direct to Cell services, where the strategic collaboration aspires to eradicate cell phone dead zones through augmenting connectivity in remote regions. 

This partnership between a satellite operator and a wireless carrier, is the first of its kind, which has set a precedent for the Pakistani telecom industry. Since Starlink’s arrival in Pakistan is now imminent, we might see similar alliances emerging between the satellite operator and local mobile network operators. But how will these partnerships function and what kind of an impact will it have on the telecom industry? In this story, Profit reimagines the telecom industry after the advent of Starlink’s Direct to Cell technology in Pakistan.