KDDI prepares the ground for space-based mobile services

Japanese operator KDDI is gearing up to launch direct-to-cell mobile services in its home market through a partnership with SpaceX-owned Starlink. Expanding on those plans, Takenori Nishibayashi, a member of the Life Transformation Platform Department in the Business Exploration & Development Division at KDDI, talked to TM Forum Inform about the operator’s satellite ambitions and key considerations for developing direct-to-cell customer propositions.

SpaceX launched the first Starlink satellites with direct-to-cell capabilities into orbit in January, bringing the space-based mobile services closer to reality. As network testing ramps up, Starlink’s mobile operator partners are exploring new business models for offering low Earth orbit (LEO) satellite connectivity to their customers.

KDDI is Starlink’s exclusive partner in Japan and it plans to offer direct-to-cell text services later this year, with voice and data services to follow in 2025. The operator is looking to the new Starlink capability to provide LTE mobile broadband connectivity in the country’s very hard-to-reach areas and to “connect the unconnected”, said Nishibayashi.

Japan’s islands and mountains make traditional cellular coverage challenging. KDDI’s network covers 99% of the population but only 60% of the land mass.

“We believe Starlink has huge potential. It can connect remote islands and mountainous regions… We will eliminate these unconnected areas with direct-to-cell [service] with Starlink,” he said.

It is too soon for the telco to share its commercial plans as it is currently working on pricing and go-to-market models. The new service will be offered through KDDI’s mobile brand and the operator is considering whether it will be included for free as part of subscribers’ existing plans or for an additional charge.

Starlink’s direct-to-cell service does not require changes to the hardware or firmware of existing LTE smartphones, or special apps on the devices. But KDDI is considering whether phones should indicate when they are connected to the satellite service, such as via a “satellite mode” icon.

Space-based cellular connectivity also raises organizational and operational questions: for example, KDDI is working out which department within the telco will have responsibility for the direct-to-cell service; and it will be a different business model compared to the other Starlink services that KDDI offers.

Multi-staged rollout

KDDI, like Starlink’s other operator partners, plans to launch direct-to-cell services in a “step-by-step sequence” starting with text services later this year, subject to regulatory approval. This is because the LEO satellites will be launched in stages. As more satellites go into orbit, there will be higher capacity available to provide LTE voice, data and IoT services, which are expected to start in 2025.

The Japanese telco sees “huge potential” and is exploring possibilities for direct-to-cell in other areas including connected cars. For now, though, it is focused on developing the customer propositions for the text, voice and data services.

Starlink is a division of SpaceX. Having launched the first six direct-to-cell satellites in January, it plans to launch “hundreds” more to support the service. The first text messages were sent and received soon after the satellites were in orbit using spectrum from US partner T-Mobile.

SpaceX recently requested approval from regulator the US Federal Communications Commission (FCC) to expand direct-to-cell trials internationally, starting in May, in markets where it has partnerships, including Australia, Canada, Japan and New Zealand.

Starlink has seven mobile operator partnerships that will provide direct-to-cell services in their “home” markets as well as reciprocal access to each other’s networks. Along with KDDI, the initial partners are Rogers in Canada, Optus in Australia, One NZ in New Zealand, Salt in Switzerland, and Entel in Chile and Peru.

An expanding relationship

KDDI’s relationship with Starlink began in December 2022 when the operator started using the LEO satellite constellation to provide backhaul connectivity to remote base station sites. At the same time, the telco also started reselling Starlink terminals and broadband service to enterprise customers for backup communications in disaster recovery scenarios.

Since the enterprise service was launched, KDDI has delivered thousands of Starlink terminals to businesses. The telco has provided backup terminals to enterprises from other satellite providers but expects these to be replaced by Starlink over time, given the LEO service’s ability to deliver higher broadband for Internet connectivity.

The operator also uses Starlink for other use cases including providing additional capacity at events like music festivals and delivering connectivity at sea for cruise ships and ferries.

In August 2023, KDDI announced its direct-to-cell partnership with Starlink as well as plans to offer Starlink terminals for consumers through its retail stores.

After the devastating earthquake on the Noto Peninsula on 1 January 2024, Starlink was instrumental in KDDI’s network recovery efforts. The satellite operator donated 350 terminals to provide temporary base stations or to restore connectivity to existing sites, and hundreds more Starlink devices were delivered to evacuation centers to support disaster response agencies.