By Gianluca Lo Nostro and Leo Marchandon
(Reuters) -VEON is in discussions with Amazon ‘s Project Kuiper, AST SpaceMobile , and Eutelsat OneWeb to expand its satellite services for mobile devices beyond Ukraine, its CEO said on Thursday.
Telecom operators globally are increasingly adopting satellite technology to clear coverage gaps, particularly in remote areas where terrestrial networks are costly or face geographical challenges.
“We’re going to be selective. We will look into every country and we will look into our alternatives. And depending on commercial availability, capacity issues, and prioritization of the orbits, we may make different choices,” VEON CEO Kaan Terzioglu said in an interview.
Direct-to-cell technology works by positioning satellites equipped with advanced cellular modems in low Earth orbit. The satellites function as cell towers in space, beaming signals to smartphones on the ground.
VEON, the telecoms group behind Ukraine’s largest mobile operator, will roll out direct-to-cell in Ukraine this year using Elon Musk Starlink’s dedicated network, the first provider in Europe to introduce satellite services on mobile.
Terzioglu highlighted challenges in regions such as Kazakhstan, citing its vast territory and sparse population, which make full terrestrial network coverage impossible.
In Ukraine, war conditions, frontlines, and landmines hinder normal network maintenance.
He also pointed to climate-related disruptions in countries like Bangladesh and Pakistan, where cyclones and floods can compromise terrestrial networks for extended periods.
Giving a timeline for these investments would be hard as they depend on governments’ decisions on direct-to-cell licenses, Terzioglu said.
Earlier on Thursday, the company raised its annual outlook for revenue and core profit as it posted strong second-quarter earnings.
It now expects total revenue to grow between 13% and 15% and earnings before interest, taxes, depreciation and amortization (EBITDA) to rise in a range of 14% to 16% this year.
Total revenue for the quarter to end June reached $1.09 billion ($1.09 billion) while EBITDA rose to $520 million.
VEON said it expects to take a non-cash charge of up to $200 million in the third quarter as a result of its planned Kyivstar U.S. listing and the sale of its business in Kyrgyzstan.
($1 = $1.0000)
(Reporting by Gianluca Lo Nostro and Leo Marchandon; Editing by Matt Scuffham)
