TECH SUPPLIER Aug 2021 - Market Note - Doc # EUR148157621

How Does Starlink Fit in European Telecoms?

By: Simon BakerProgram Director, Mobile Phones/Consumer Devices, IDC EMEA, Rosalind CravenResearch Manager, EMEA Mobility

Abstract

This IDC Market Note considers the role of Starlink — the satellite constellation operated by Elon Musk's SpaceX — to provide low-latency, high throughput broadband connectivity. A beta service has already been launched in the U.S., and Starlink is expanding globally, including into Europe. The niche for satellite broadband is in connecting hard-to-reach rural areas that are challenging to connect to fiber networks with ultra-fast broadband services. A lot of the money behind the uptake of satellite broadband in Europe in the next few years is expected to come from national projects and from EU funds in the post-COVID-19 economic stimulus package.

"This funding will tend to be funneled toward national champions," said Simon Baker, program director, IDC EMEA. "Starlink may have a tough time accessing these funds, unless it is willing to partner with local telcos. Telcos also need to develop multiplatform strategies for satellite broadband in rural areas that should include Starlink."


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