[Edaily Reporter Kim Hyun-ah ] Elon Musk’s SpaceX is expanding its push into the global telecommunications market, led by Starlink. With the emergence of D2D (Direct-to-Device) technology—which connects ordinary smartphones directly to satellites—the competitive landscape has broadened to include the existing mobile communications market. While domestic telecom carriers view the short-term impact as limited, experts warn that South Korea could cede leadership in 6G and artificial intelligence (AI) infrastructure to foreign companies.

Starlink’s competitive edge lies in its large-scale satellite network and partnerships with global telecom carriers. Through collaborations with U.S.-based T-Mobile and Japan’s KD Corporation, among others, it is reducing coverage gaps and expanding services that allow standard smartphones to connect to satellites without the need for dedicated antennas.

Competition surrounding Starlink is expanding beyond telecommunications into AI infrastructure. In the 6G era, the integration of terrestrial and satellite networks, as well as space-based edge computing and space data centers, are expected to emerge as new areas of competition. Experts emphasized that South Korea should focus on securing technological competitiveness—such as satellite technology based on 6G international standards, integration with overseas satellite networks, and AI semiconductors for space applications—rather than competing on the sheer number of satellites.

Telecom Companies: “Starlink’s Impact

Will Be Limited”…

Caution on D2D Adoption

SKTelecom(017670)and LG Uplus(032640)assessed during their third-quarter earnings conference calls on the 4th that the short-term impact of low-Earth orbit (LEO) satellite communication services, such as Starlink, on the domestic mobile communications market would be limited.

Kevin Cho, Chief Strategy Officer (CSO) of LG Uplus, explained that Starlink is expanding its satellite-based mobile service capabilities by advancing D2D (Device-to-Device) technology—which directly connects satellites to standard mobile devices—and by securing mobile communication frequencies. The assessment is that satellite communications could become a new competitive factor in the mobile communications market in the medium to long term, moving beyond simply supplementing the coverage of terrestrial networks.

However, given the differences in frequency policies and regulatory environments across countries, the company believes the likelihood of satellite communications replacing existing mobile services in the short term is limited. CSO Cho stated, “We expect satellite networks to form a complementary relationship by addressing the limitations of terrestrial networks in mountainous, island, and maritime regions.”

LG Uplus plans to participate in research on core non-terrestrial network (NTN) technologies and 3GPP-based global standardization, while also exploring service models and business opportunities that integrate satellite and terrestrial networks. SKTelecom also projected that, in South Korea—where a nationwide 5G network and indoor communication networks are already in place—satellite communications will serve to fill coverage gaps rather than replace existing mobile networks.

The introduction of D2D services in Korea requires regulatory review, including spectrum allocation and business licensing. For satellite operators to utilize domestic mobile communication spectrum to provide services directly to standard smartphones, they must comprehensively consider factors such as their relationship with domestic communication networks, spectrum policy, and the impact on the domestic industry.

Efforts to secure domestic satellite infrastructure are also continuing. Choi Kyung-il, CEO of KT SAT, announced earlier this year that the company had applied to the International Telecommunication Union (ITU) for international registration of frequencies and orbits to build a satellite network comprising 7,000 low-Earth orbit satellites and had begun related international coordination. This initiative is part of a plan to establish a sovereign space AI data center for South Korea.

Expert: “It’s Difficult to Compete with SpaceX on Scale”… Linking to Overseas Networks via 6G Standard Satellites

At a National Assembly panel discussion held on the 2nd as part of the Space Data Center Forum, Kwon Yong-hwan, Director of ETRI, assessed that Starlink’s expansion is even threatening business opportunities for the domestic telecommunications and satellite industries. This is because Starlink is expanding the D2D market through partnerships with global mobile carriers such as T-Mobile in the U.S. and KDDI in Japan.

Director Kwon stated, “Our telecommunications satellites have, to some extent, lost their direction,” adding, “We are not in a position to compete with a Goliath like SpaceX. It is difficult for any country to launch satellites on the same massive scale as SpaceX.”

The alternative he proposed is an international 6G standard that integrates terrestrial and satellite networks. He explained that even if each country builds its own satellite network, the domestic satellite industry could expand its market overseas if these networks can be interconnected and utilized through international standards.

Director Kwon said, “Various countries, including China, the Middle East, Japan, and Europe, are developing satellites based on 6G communication standards,” adding, “If the satellites developed by these countries can be shared with one another, we can expand our business beyond the assets of a single nation to target the global market.”

He predicted that an era of communications, in which a single device can simultaneously access both terrestrial and satellite networks, will begin in 2030. He also proposed that the Korean Positioning System (KPS), which plans to deploy approximately 500 satellites by 2035, should be used to validate domestic components and technologies and serve as a springboard for entering overseas markets.

Lee Chang-jin, an expert committee member at the Korea Space Technology Promotion Association, emphasized that space data centers should serve as an opportunity to enhance the technological capabilities of the national space industry. “Rather than simply chasing after Google or SpaceX, we should create a flagship space development program for the entire nation,” he said, adding that the very process of securing launch vehicles, orbital transport vehicles, space mobility, and communications, electronics, and semiconductor technologies will itself become a national asset. In particular, he stressed the need to cultivate space-grade AI semiconductors as a new competitive edge.

Analysts suggest that for domestic companies to enter the global satellite communications market, they must focus on securing technological competitiveness rather than the scale of satellite launches. A strategy is needed to secure competitiveness in areas such as satellite-to-satellite communication equipment, antennas, space-grade semiconductors, and ground network integration software, thereby participating in overseas satellite network supply chains.

SpaceLink, Preparing Starlink-Based Services: “D2D Should Be Introduced Starting with Disaster Safety”

STACO LINK, which is preparing Starlink-based services, argues that satellite D2D services should be introduced starting with the disaster safety sector. The proposal calls for revising frequency allocations and related laws and regulations, and conducting pilot projects in forested, maritime, and island regions. It also suggested a plan to utilize multiple satellite networks, including not only Starlink but also OneWeb and Amazon.

The vision is to use satellite D2D to supplement rescue and safety communications for the general public, while assigning the existing national disaster response network the role of handling command and communications functions for response agencies. Unlike telecom companies, which emphasize 6G preparedness, SpaceLink takes the position that Starlink should be actively introduced starting with the disaster safety sector.

Meanwhile, in January of this year, SpaceX applied to the U.S. Federal Communications Commission (FCC) for permission to deploy a satellite system of up to 1 million units to build a space-based AI data center. Although the actual deployment has not yet been finalized, this move demonstrates SpaceX’s long-term expansion strategy to secure space-based AI infrastructure, following its success in dominating the satellite communications market with Starlink.