Kyivstar tests Starlink Direct to Cell in Ukraine, first in eastern Europe

KYIV - Ukrainian telecom operator Kyivstar, a subsidiary of VEON Ltd. (NASDAQ:VEON), has successfully conducted the first field test of Starlink Direct to Cell technology in eastern Europe, according to a company press release. VEON, which has seen its stock surge over 100% in the past year according to InvestingPro data, continues to demonstrate strong market performance with impressive gross profit margins of 87%.

The test, carried out in the Zhytomyr region, demonstrated the integration of satellite and terrestrial network capabilities. Kyivstar CEO Oleksandr Komarov and Ukraine’s Minister of Digital Transformation, Mykhailo Fedorov, exchanged messages via satellite using standard 4G smartphones during the pilot.

Kyivstar and Starlink plan to commercially launch Direct to Cell connectivity in the fourth quarter of 2025, beginning with messaging services. The technology allows regular smartphones to connect directly to satellites without requiring hardware modifications or special applications.

"This cutting-edge technology is a breakthrough for Ukraine as well as Kyivstar," said Komarov. "We continue to invest in the most advanced technologies, not only to provide seamless services for Ukrainians today, but also to define the connectivity landscape of Ukraine for the future."

The initiative aims to provide communication capabilities in areas where traditional networks are unavailable or compromised, addressing connectivity challenges in a country affected by war.

"Despite all the challenges of wartime, we continue to develop innovative solutions, because reliable communication under any circumstances and in any location is one of our key priorities," said Fedorov.

VEON has committed to investing $1 billion in Ukraine between 2023 and 2027 through infrastructure investments, technological development, charitable donations, and strategic acquisitions. The company’s robust financial position, with a market capitalization of $3.96 billion and revenue growth of 8.84%, supports this significant investment commitment. InvestingPro analysis suggests VEON is currently trading below its Fair Value, with 12 additional exclusive insights available to subscribers.

Kyivstar serves approximately 23 million mobile subscribers and over 1.1 million home internet customers in Ukraine as of December 31, 2024. Trading near its 52-week high, VEON’s strong market position is reflected in its financial metrics. For detailed analysis and comprehensive insights, including the company’s full financial health score, check out the Pro Research Report available on InvestingPro.

In other recent news, VEON Ltd. announced securing approximately $52.3 million in non-redemption agreements for its business combination with Cohen Circle Acquisition Corp. I. This transaction is expected to enable Kyivstar Group to become the first pure-play Ukrainian company listed on a U.S. stock exchange. Additionally, VEON completed the pricing of a $200 million private placement of senior unsecured notes due in 2029, with an annual interest rate of 9.000%. The notes are expected to receive a BB- credit rating from S&P and Fitch. Furthermore, Kyivstar, a subsidiary of VEON, received regulatory approval to test Starlink Direct-to-Cell services in Ukraine, marking a significant step in integrating satellite technology with mobile networks.

Benchmark reiterated its Buy rating on VEON stock, attributing a recent selloff to geopolitical factors rather than company-specific issues. VEON also announced the commencement of the third phase of its $35 million share buyback program, following the completion of the second phase. These developments highlight VEON’s strategic financial maneuvers and ongoing market activities.

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