Kyivstar gets approval to test Starlink Direct-to-Cell in Ukraine

DUBAI/KYIV - Ukrainian mobile operator Kyivstar has received regulatory approval to conduct field testing of Starlink Direct-to-Cell services in Ukraine, parent company VEON Ltd. (NASDAQ:VEON), a telecommunications giant with an impressive 87% gross profit margin according to InvestingPro data, announced Wednesday.

The Ukrainian National Commission for the State Regulation of Electronic Communications granted permission for the testing, which follows successful integration of Kyivstar’s core mobile network with Starlink’s satellite network. Recent tests confirmed Kyivstar SIM cards are compatible with the Starlink Direct-to-Cell system. VEON’s strong financial health, as indicated by InvestingPro’s analysis, suggests robust backing for this technological advancement.

Field testing will begin in select Ukrainian regions this summer, starting with text message services. The full launch of Direct-to-Cell services supporting SMS and over-the-top messaging is planned for Q4 2025.

"Kyivstar remains at the forefront of ensuring Ukraine’s connectivity, especially during challenging times," said Oleksandr Komarov, CEO of Kyivstar.

The technology aims to enhance connectivity in areas affected by infrastructure damage and in rural regions, as well as during emergencies. Kyivstar has allocated the required spectrum for the service and is preparing its infrastructure for full integration.

Kyivstar serves more than 23 million mobile subscribers and over 1.1 million home internet customers in Ukraine as of December 2024.

VEON, which operates across six countries serving nearly 160 million customers, has committed with Kyivstar to invest $1 billion into developing new telecom technologies in Ukraine over 2023-2027.

The information in this article is based on a company press release.

In other recent news, VEON Ltd. reported its first-quarter financial results for 2025, highlighting a notable 12.9% revenue growth in local currency and an 8.9% increase to $1.026 billion in U.S. dollar terms. The company’s Adjusted EBITDA also rose by 13.7% to $439 million, surpassing Benchmark’s more conservative projections. VEON has launched the third phase of its $35 million share buyback program, following the completion of the second phase, where it repurchased 1.43 million American Depositary Shares. Additionally, VEON finalized a strategic partnership with Pakistan’s Engro Corporation to manage telecommunications infrastructure assets, aiming to enhance digital investments in Pakistan. The partnership includes a $188 million payment to Jazz and a guarantee for the repayment of Deodar’s intercompany debt.

Moreover, VEON’s Kazakh subsidiary QazCode announced a collaboration with AI firm Seekr to develop AI-powered solutions for businesses, utilizing Seekr’s enterprise AI platform to enhance their offerings. Benchmark reiterated its Buy rating and $60 price target for VEON, attributing a recent stock selloff to geopolitical factors rather than company-specific issues. The firm maintained a positive long-term outlook on VEON despite potential short-term impacts from geopolitical developments. VEON is also exploring options to raise external financing through a private bond placement, with discussions ongoing with potential institutional investors.

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