[Edaily Reporter Yun Junghoon ]LG Uplus(032640)highlighted the expansion of “Direct to Cell” (D2C) services by low-Earth orbit satellite communications providers—including SpaceX’s Starlink, led by CEO Elon Musk—as a competitive factor in the mobile communications market over the medium to long term. However, it projected that satellite communications would serve to supplement areas where terrestrial networks are difficult to reach, such as at sea or in mountainous regions, rather than replace existing mobile networks.

Kevin Cho, Chief Strategy Officer (CSO) of LG Uplus, gave this response during a recent earnings conference call when asked about the impact the Starlink business would have on the mobile communications industry.

CSO Cho specifically mentioned that SpaceX has recently moved to secure the spectrum necessary for its satellite communications service. On the 8th of last month, SpaceX reached an agreement to acquire an 800 MHz spectrum license held by the U.S. investment firm Grain Management. This move is intended to secure low-band spectrum with a bandwidth of up to 14 MHz to strengthen Starlink’s mobile services and expand its entry into the U.S. mobile communications market. Previously, SpaceX also signed an agreement to acquire 65 MHz of spectrum from EcoStar for $17 billion.

CSO Cho stated, “Recently, Starlink has been expanding its satellite-based mobile service domain by expanding its D2C (Direct-to-Consumer) service, which connects satellites directly to standard mobile devices, and by securing mobile spectrum,” adding, “These moves will go beyond simply supplementing terrestrial network coverage and will evolve into a competitive factor in the mobile communications market over the medium to long term.”

However, he viewed the likelihood of satellite services eroding the market share of existing mobile operators in the short term as limited. This assessment is based on the fact that frequency policies and regulatory environments vary by country, and there are technical and business constraints preventing satellite communications from directly replacing terrestrial mobile networks.

He said, “Since national spectrum policies vary, the impact on existing mobile communications businesses will likely be limited,” adding, “Rather, we expect satellite networks to evolve in a way that complements the limitations of terrestrial networks—such as in maritime or mountainous areas—and to form a complementary relationship with terrestrial networks in the future.”

Rather than viewing satellite communications solely as a competitor, LG Uplus is developing a strategic response by recognizing it as a key pillar of future telecommunications infrastructure.

CSO Cho explained, “We are continuously monitoring D2C trends among global mobile and satellite communications operators,” adding, “We are also participating in the 3GPP’s global standardization efforts for Non-Terrestrial Networks (NTN).”

He continued, “We are also exploring opportunities to create new service models by integrating satellite and terrestrial networks,” and added, “We will continue to build the capabilities needed to proactively respond to changes in the future telecommunications environment.”