Expanding internet service geographically with Starlink encounters rival providers in fresh markets
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In the ever-evolving landscape of technology, Elon Musk's SpaceX-owned Starlink continues to make waves, particularly in the realm of satellite internet provision. With over 5 million users in 125 countries and territories, Starlink has rapidly expanded its reach, even doubling its subscriber base in 2024 alone.
Starlink's unique selling point lies in its use of low-earth orbit satellites, which allow for internet connection without the need for cable connections or towers. This innovation has proven particularly beneficial for remote areas, such as Zimbabwean villages and tsunami-hit islands in Tonga, that traditional providers struggle to reach.
However, the fast growth of Starlink's operations has sparked concerns about the dominance of a company owned by billionaire Elon Musk. Some countries, including Pacific nations, express worries about potential data security and privacy risks posed by Starlink. These concerns are heightened by Musk's role as a "special government employee" for Trump and SpaceX's involvement in building hundreds of spy satellites for the US military.
Competition for Starlink is not lacking. China plans to launch 43,000 low-earth orbit satellites by 2030 for satellite internet, aiming to challenge Starlink's dominance. Meanwhile, Shanghai-based SpaceSail is planning to enter Brazil, has begun working in Kazakhstan, and is in talks with more than 30 other countries.
In the race for satellite internet dominance, Peter Thiel is trying to overcome China as a competitor through his involvement in Rivada Space Networks, a US-based company backed by political and defense figures. Rivada aims to deploy satellite internet rivalling Starlink, starting in 2027.
Starlink's ambitions extend beyond Earth, with Musk's Marslink project aiming to deliver internet connectivity to Earth from Mars.
Starlink's expansion is not limited to remote areas. The company is also making inroads into South Asian countries, including India and Pakistan, and has signed agreements with several Bangladeshi firms to set up ground stations.
However, Starlink's bid to enter South Africa has been stalled due to equity laws requiring international companies to sell or donate a 30% stake to historically disadvantaged communities.
In regions where traditional telecom networks have been devastated, such as Ukraine after Russia's 2022 invasion, Starlink has become a key provider. Yet, concerns have arisen about Musk's company having too much control over Ukraine's communications.
Eutelsat, a French-German satellite group, is discussing providing additional internet access to Ukraine, given concerns about Musk potentially pulling the plug. However, Eutelsat's packages are more expensive compared to Starlink.
This story falls under the SDGs (Sustainable Development Goals) of Infrastructure (SDG 9) and Peace (SDG 16). It covers Cities, Policy & Finance, Asia Pacific, China, Global, India, Pakistan, South Asia, and the United States as regions.
This story, published with permission from Thomson Reuters Foundation, focuses on humanitarian news, climate change, resilience, women's rights, trafficking, and property rights. Its tags include infrastructure, investment, regulation, innovation, and digitalization.
