Starlink To Benefit From Telstra’s Dodgy Size Claims

Telstra will be forced to cut back its advertised network coverage by around one million square kilometres following a regulatory crackdown on what the federal government has described as a “mess” of inconsistent and potentially misleading industry claims.

The good news is that recent Starlink upgrades is providing superior services in areas where Telsta services are poor or none existant.

Under new rules announced by Communications Minister Anika Wells, telcos must adopt stricter standards for how mobile coverage is measured and marketed—changes that directly impact Telstra, long known for promoting the scale of its network.

The revisions will require the removal of an area roughly the size of New South Wales from Telstra’s coverage maps, raising questions about how accurately Australians have been informed about service availability, particularly in regional and remote areas.

The government’s move follows ongoing criticism that coverage maps have overstated real-world performance, with some consumers reporting little to no usable service in areas previously marked as covered.

“This is a win for Australian consumers,” Wells said, adding that people should have clear, reliable information when choosing a provider.

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The Australian Communications and Media Authority (ACMA) will introduce a new four-tier system—Good, Moderate, Basic and No Coverage—based on whether a standard mobile phone can deliver a usable service, rather than simply detecting a signal.

Telstra has pushed back against the technical benchmark underpinning the new standard, arguing the threshold for usable coverage is too strict. Rivals Optus and TPG have rejected that position, accusing the company of attempting to blur the definition of coverage.

The overhaul comes at a time when alternatives to traditional mobile and fixed-line services are gaining traction—most notably Elon Musk’s Starlink satellite network.

Once dismissed by Telstra as a high-cost, last-resort option, satellite internet is increasingly being adopted as a primary service, particularly in rural Australia where terrestrial networks have struggled to deliver consistent performance.

Industry data indicates strong growth in Starlink uptake, with retailers reporting a surge in demand and the service’s customer base in Australia doubling in 2025. One in five rural households that switched providers last year chose Starlink, according to market estimates.

The shift reflects growing frustration among regional consumers, some of whom say Starlink offers more reliable performance at a lower cost than traditional telco plans.

Starlink with Telstra

Opensignal data suggests Starlink is no longer just attracting users from legacy satellite services, but is increasingly pulling customers away from major carriers such as Telstra—even among those who are not relocating.

The report attributes Starlink’s growth to significant improvements in network performance, aggressive pricing and a focus on underserved markets where conventional infrastructure has failed to scale.

Reliability metrics have improved markedly, with Australian performance rising by more than 30% in late 2025. The gains are linked to upgrades in satellite hardware, expanded ground infrastructure and improved software that reduces service interruptions.

More than 650 Direct-to-Cell satellites have also been deployed globally, further strengthening coverage and capacity.

With Telstra now required to revise its coverage claims, analysts expect increased scrutiny from consumers and potential shifts toward alternative providers in areas where service falls short of expectations.

The company has until June 30 to comply with the new standards, marking a significant reset in how network coverage is defined—and how Australians assess the performance of their telecommunications providers.