Starlink, the company of American billionaire Elon Musk, has also stepped up its efforts to bring satellite internet to Nepal.
The world's richest man, Elon Musk, is looking to expand his business in Nepal along with other countries in South Asia. His Starlink is providing internet services in more than 100 countries via satellite.
Although Starlink has been the subject of media attention for the past two to three years, it's only recently accelerated its efforts to officially launch its services in Nepal.
Prime Minister KP Sharma Oli, who is preparing to embark on a China visit, had a virtual conversation with Elon Musk on last Friday, triggering geopolitical ripples yet again.
China and India have shown concerns after the news circulated that Starlink is trying to make inroad into Nepal with the goal of providing internet service through satellite.
Starlink provides internet through satellites, unlike the traditional cable internet services. Starlink is the satellite-based internet service
Starlink's network utilizes low-Earth-orbit satellites to transmit internet signals to ground-based base stations. These stations then route the signal to user devices through a network of routers and cables.
(A virtual conversation between Prime Minister Oli and Elon Musk/Prime Minister's Secretariat)
Prime Minister Oli took to X (formerly Twitter) to announce a virtual meeting with Elon Musk, extending an invitation for a visit to Nepal.
Even though the Office of the Prime Minister has not explicitly stated about the topic discussed during the conversation between Oili and Musk, the officials at the Office of the Prime Minister have said that the conversation centered on Starlink.
Prime Minister Oli was scheduled to meet with Musk during his visit to America to participate in the 79th General Assembly of the United Nations, but it did not happen since Musk was outside New York. Against this backdrop, Oli held a virtual conversation with Musk.
A delegation led by Rebecca Hunter, Director of Global Licensing at Starlink, had visited Nepal in the Nepali month Bhadra. The team had met with Prime Minister Oli and Communications and Information Technology Prithvi Subba Gurung. Gurung publicly revealed that the delegation led by Director Rebecca, during their visit to Nepal, expressed keen interest in investing in the country.
However, Prime Minister Oli, seemingly mindful of Indian and Chinese concerns, did not give a positive response to the Starlink team in that meeting.
Gajendra Thakur, Joint Secretary at the Ministry of Communications and Information Technology, said that since Starlink hasn't provided official details, the ministry can't say much.
"Only after the Starlink briefing will we know what kind of technology it is and what challenges it faces in terms of security," Thakur told Nepalkhabar. "We haven't been able to analyze what kind of economic impact it will have and how it can compete with other service providers."
Starlink is also trying to expand its services in India, but Indian authorities are more concerned about security.
"It appears that the decision to withhold permission was influenced by India's concerns regarding data security, specifically the potential transfer of data to the United States," Thakur stated. "Nepal shares similar concerns about the protection of its own data."
(Communications Minister Prithvi Subba Gurung meeting with Starlink team including US Ambassador)
Data security concerns with Starlink
On May 19, Musk himself officially launched SpaceX's satellite internet service in Indonesia. Starlink is already available in Malaysia, the Philippines, Mongolia, and Japan.
In South Asia, Starlink has already launched its services in the Maldives, while Sri Lanka's parliament has amended its years-old telecommunications services law, paving the way for Starlink to operate in Sri Lanka. Starlink plans to introduce its internet services in Bhutan and Bangladesh starting 2025.
Starlink is a high-speed internet service that combines advanced satellite technology and user hardware. It provides internet connectivity with download and upload speeds of up to 10 Gbps, which can be accessed through Starlink Gateways and Community Gateways, according to the company.
Nepal law does not allow full ownership
Nepal Telecommunications Authority Director Santosh Poudel says that Starlink Services LLC should give 20 percent of its shares to Nepalis to operate the internet in Nepal.
"Starlink can register a company by giving 20 percent share ownership to Nepalis and apply to the Authority for approval," said Director Poudel, "Starlink is currently trying to retain full ownership of its operations, which is not provided by our current law." So far, we haven't received any official application from Starlink about its plans to operate in Nepal, he said.
Dr. Pradeep Paudyal, Deputy Director of the Authority, also said that there are more legal than technical hurdles for Starlink to enter Nepal.
"The Telecommunications Act stipulates that companies like Starlink must adhere to specific regulations, such as offering shares to Nepali citizens. Further, there may be additional requirements related to obtaining a separate mobile license," said Paudyal, "Nevertheless, from a technical perspective, there are no major impediments to providing internet services through Starlink in Nepal. The government retains the authority to allocate the necessary spectrum to enable this."
Our laws mandate spectrum distribution through competitive processes, preventing direct allocation to Starlink. A separate legal provision would be necessary. "A new telecommunications act is being drafted, which could facilitate entry for companies like Starlink, provided the government implements suitable regulations," Paudyal told Nepalkhabar.
It has been five years since SpaceX launched a satellite from Cape Canaveral, Florida, USA, to provide internet service. At that time, the company had already provided beam internet to the world in 2020. The internet service was launched after sending 60 satellites into low Earth orbit.
By November 2024, more than 7,000 small Starlink satellites will be orbiting Earth, providing high-speed internet service to remote and underserved regions across the globe. The company aims to generate $6.6 billion in revenue in 2024.
According to a 2023 report, a staggering 2.6 billion people worldwide still lack internet access. Starlink's distribution offers a promising solution to this digital divide, potentially connecting billions of people to the global network. As of now, Starlink's internet service has been launched in 113 countries, according to Insider Tech.
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