BT in talks with Musk's Starlink over rural broadband offering

Telecommunications giant BT was said to be in discussions with Elon Musk's Starlink regarding a satellite phone and broadband offering aimed at servicing rural dead spots.

BT will test Starlink's equipment at its Adastral Park research centre near Ipswich, according to the Telegraph, as it looks to deliver connections to hard-to-reach areas of the UK.

While BT originally intended to use the Starlink network solely for broadband services, the firm was now said to be looking at utilising the technology in order to improve mobile signals across Britain.

If BT was to ink a direct-to-mobile deal with Starlink, which operates a network of roughly 5,000 satellites, it would possibly be required to obtain a special licence from industry watchdog Ofcom.

Talks were currently centred around BT's business offering, which allows it to deliver mobile and broadband services to remote sites such as oil rigs and mines. However, the technology was also expected to be rolled out to consumers in an effort to plug gaps that traditional cables and masts have been unable to reach.

As of 0830 GMT, BT shares were up 0.043% at 116.95p.

Reporting by Iain Gilbert at Sharecast.com