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Telcos distance themselves from TPG’s pitch to break SpaceX standoff

TPG CTO Giovanni Chiarelli suggested Starlink should get concessional access to key licences for satellite-based mobile services, shifting from a call for a competitive process.

SpaceX launched their Falcon 9 rocket with a batch of Starlink satellite on 25 May 2026. Sipa USA/Michael Cain Jr.

TPG Telecom stands alone in its effort to break a telco standoff with Elon Musk’s Starlink as the leading satellite mobile service provider’s parent company SpaceX prepares for a Nasdaq float at a valuation near USD1.8 trillion ($2.6 billion).

Telstra and Optus have distanced themselves from TPG’s suggestion that Starlink be given free or concessional access to airwaves dedicated to satellite mobile services as long as it is captured by strict service obligations.

Control over the two mobile satellite spectrum licences is being sharply contested, particularly as the nascent technology is considered essential for meeting the universal outdoor mobile obligation (UOMO) that government hopes to impose on telcos.

Telco regulator ACMA is still considering how it would like to allocate the licences after it scrapped plans for an auction in the second quarter of 2026 to further consider conflicting industry views.