Key facts
- SpaceX's Starlink is seeking to offer satellite internet services in Nepal.
- Nepal's laws require foreign telecom operators to have local ownership.
- Starlink desires full or near-full control, creating a regulatory conflict.
- US officials, including Under Secretary of State Sarah Rogers, are advocating for Starlink's expansion in Nepal.
- Bangladesh has granted Starlink permission to export bandwidth, creating a potential technical route into Nepal.
Nepal faces a regulatory challenge as Elon Musk's SpaceX, the operator of Starlink satellite internet, seeks to enter the Nepali market but insists on full ownership, which conflicts with the country's laws requiring foreign companies to partner with local entities. US officials have been actively promoting Starlink's expansion in Nepal, highlighting internet connectivity as a priority.
Starlink representatives, including director Rebecca Hunter, have met with Nepal's Minister for Communications and Information Technology Bikram Timilsina to discuss the potential service launch. Hunter expressed that approval is contingent on Starlink operating with 100% ownership, a stance that clashes with Nepal's telecommunications regulations. Despite these hurdles, Starlink has explored potential business partnerships with Nepali service providers, though many local internet companies oppose its entry due to fears of business loss and layoffs.
Meanwhile, Bangladesh has granted Starlink permission to export bandwidth, potentially creating a technical pathway for the service to reach Nepal and other landlocked neighbors. This move could transform Bangladesh into a regional transit hub for satellite internet. However, Nepal's domestic regulatory policy remains the primary obstacle. Reports also indicate that Starlink terminals are already being used illegally in Nepal's remote Himalayan regions, primarily by foreign trekkers and expedition groups.
Previous attempts by Starlink to enter Nepal have been stalled, partly due to concerns from some government officials who viewed the service as linked to broader US geopolitical and defense interests, potentially impacting Nepal's relations with China and India. China's Huawei currently holds a dominant position in Nepal's internet infrastructure market.