VEON’s Kyivstar Advances Direct-to-Cell Services With Starlink Integration and Regulatory Approval for Testing

Rhea-AI Summary

VEON's Ukrainian subsidiary Kyivstar has achieved a significant milestone in advancing Direct-to-Cell (D2C) services through successful integration with Starlink and regulatory approval for testing. The company completed successful testing of Kyivstar SIM card compatibility with Starlink's satellite network in the US, and received approval from Ukraine's NCEC for field testing. The planned D2C service launch is set for Q4 2025, initially supporting SMS and OTT messaging. Field testing will begin in select Ukrainian regions this summer, focusing on text message services. This initiative aims to enhance connectivity in areas affected by infrastructure damage, rural regions, and during emergencies. Kyivstar has already allocated necessary spectrum and is preparing infrastructure for full integration.

Positive

• Successful integration of Kyivstar's core mobile network with Starlink's Direct-to-Cell service
• Received regulatory approval for field testing from Ukrainian authorities
• Planned commercial launch in Q4 2025 will enhance connectivity in damaged and rural areas
• Already secured spectrum allocation for the service

Negative

• None.

Insights

Telecommunications Infrastructure Analyst

Kyivstar's Starlink D2C integration brings critical connectivity resilience to war-affected Ukraine, positioning VEON at technological forefront.

Kyivstar's regulatory approval to test Starlink's Direct-to-Cell (D2C) technology represents a significant infrastructure advancement for VEON's Ukrainian operations. The successful integration of Kyivstar's core mobile network with Starlink's satellite system creates a hybrid terrestrial-satellite solution particularly valuable in Ukraine's current context of infrastructure vulnerability.

The technical milestone of confirming SIM compatibility with Starlink's D2C system is crucial, as it allows Kyivstar to leverage existing customer base and billing systems without requiring specialized devices. This reduces deployment barriers and enables seamless customer adoption compared to traditional satellite services that require dedicated hardware.

The planned Q4 2025 commercial launch focusing on SMS and over-the-top messaging services addresses the most critical communication needs during infrastructure disruptions. Text-based services require minimal bandwidth while providing essential connectivity, making them ideal first applications for this technology. The spectrum allocation by Kyivstar also indicates serious commitment to this initiative.

This implementation has particular strategic value in Ukraine, where approximately 20% of telecommunications infrastructure has been damaged during the conflict. The D2C capability provides Kyivstar with a resilient backup to terrestrial networks, potentially becoming a competitive differentiator and enabling service continuity despite physical infrastructure challenges.

For VEON, this represents a forward-thinking infrastructure strategy that addresses both immediate wartime resilience needs while positioning for future rural connectivity expansion - a dual value proposition that enhances both humanitarian response and commercial positioning.

Dubai and Kyiv, June 18, 2025 – VEON Ltd. (Nasdaq: VEON), a global digital operator (“VEON” or the “Company”), today announces that Kyivstar, its digital operator in Ukraine, has received regulatory approval to conduct testing of Starlink Direct-to-Cell (D2C) services from the Ukrainian National Commission for the State Regulation of Electronic Communications, Radio Frequency Spectrum and the Provision of Postal Services (NCEC). Today’s regulatory approval for field testing follows successful integration of Kyivstar’s core mobile network with Starlink’s Direct-to-Cell service.

Successful testing on the integration of Kyivstar’s SIM card with Starlink’s satellite network was recently completed at a partner technology evaluation lab in the United States. The success of the tests confirmed that Kyivstar SIM cards are compatible with the Starlink D2C system, marking a major technical milestone toward launching D2C services in Ukraine.

The planned launch of D2C services with support for SMS and over-the-top (OTT) messaging is scheduled for Q4 2025 and is expected to further enhance Kyivstar’s ability to provide essential connectivity for Ukraine, especially in areas impacted by infrastructure damage and rural regions, as well as during emergencies. Field testing is planned to commence in select Ukrainian regions this summer, beginning with text message services.

“Kyivstar remains at the forefront of ensuring Ukraine’s connectivity, especially during challenging times,” stated Oleksandr Komarov, CEO of Kyivstar. “This partnership with Starlink underscores our determination to provide uninterrupted communication to our customers, regardless of circumstances. Deployment of this technology highlights our commitment to innovation and service reliability.”

This initiative is being implemented in coordination with NCEC, which has officially granted permission for field testing of this technology in Ukraine. Kyivstar has already allocated the required spectrum to launch the service and is adapting its infrastructure for full integration ahead of the scheduled launch.

“In times of war, when communication and connectivity are essential humanitarian needs, VEON and Kyivstar are committed to investing in technologies that ensure connectivity for Ukraine and keep critical channels open,” said Kaan Terzioglu, VEON Group CEO. “With the integration of satellite constellations, we are further enhancing Ukraine’s connectivity.”

About VEON
VEON is a digital operator that provides converged connectivity and digital services to nearly 160 million customers. Operating across six countries that are home to more than 7% of the world’s population, VEON is transforming lives through technology-driven services that empower individuals and drive economic growth. VEON is listed on NASDAQ. For more information, visit: https://www.veon.com.

About Kyivstar
Kyivstar is Ukraine's largest digital operator, serving more than 23 million mobile subscribers and over 1.1 million Home Internet fixed line customers as of December 2024. The company provides services across a wide range of mobile and fixed line technologies, including 4G, big data, cloud solutions, cybersecurity, digital TV, and more. VEON and Kyivstar have committed to invest USD 1 billion into the development of new telecom technologies in Ukraine over 2023-2027. Kyivstar has allocated over UAH 2 billion over the past two years to help Ukraine overcome wartime challenges, including providing support for the Armed Forces, clients and social projects. Kyivstar has been operating in Ukraine for 27 years and is recognized a leading employer and a top contributor to socially important initiatives.

Disclaimer
This release contains “forward-looking statements”, as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical facts, and include statements relating to, among other things, VEON’s strategic priorities, operating model and development plans as well as VEON’s ability to achieve anticipated results and business objectives. Forward-looking statements are inherently subject to risks and uncertainties, many of which VEON cannot predict with accuracy and some of which VEON might not even anticipate. The forward-looking statements contained in this release speak only as of the date of this release. VEON does not undertake to publicly update, except as required by U.S. federal securities laws, any forward-looking statement to reflect events or circumstances after such dates or to reflect the occurrence of unanticipated events.

Contact Information

VEON

Hande Asik
Group Director of Communications
pr@veon.com

FAQ

When will VEON's Kyivstar launch Starlink Direct-to-Cell services in Ukraine?

Kyivstar plans to launch Direct-to-Cell services with Starlink in Q4 2025, initially supporting SMS and OTT messaging services.

What approvals has VEON received for Starlink Direct-to-Cell testing in Ukraine?

VEON's Kyivstar received approval from the Ukrainian National Commission (NCEC) to conduct field testing of Starlink Direct-to-Cell services.

What areas will VEON's Starlink Direct-to-Cell service cover in Ukraine?

The service will enhance connectivity in areas impacted by infrastructure damage, rural regions, and during emergencies across Ukraine.

What services will VEON's Starlink Direct-to-Cell initially offer?

The initial launch will support SMS and over-the-top (OTT) messaging services.

Has VEON completed technical testing for Starlink Direct-to-Cell integration?

Yes, VEON's Kyivstar has successfully completed testing of SIM card compatibility with Starlink's satellite network at a partner technology evaluation lab in the United States.