What Condition Has Starlink Set for Entering Nepal? Is the Government Willing to Accept It?

Despite the government’s claim that there is no obstacle to Starlink entering Nepal as long as it operates within the existing legal framework, Starlink has reiterated its condition. Starlink, one of the ambitious projects by Elon Musk, one of the richest individuals globally, has made repeated attempts to enter the Nepalese internet service market. However, reports indicate that it has yet to gain entry due to its conditions.

Last week, a senior Starlink official met with Minister for Information and Communications, Bikram Timilsina. At this meeting, the company’s director, Rebecca Sleek Hunter, reiterated Starlink’s condition on behalf of the company. According to a statement issued by the minister, although the government can allow Starlink to operate internet services in Nepal, permission has not yet been granted due to policy and legal complexities.

Hunter stated that the company’s stance is that the license must be 100 percent owned by Starlink to grant permission. However, Nepal’s current telecommunications policy does not permit 100 percent foreign ownership. “We informed them that they must proceed based on Nepal’s existing policies and laws,” Minister Timilsina explained on Thursday. “Our policy requires at least 20 percent domestic investment,” he added.

The Telecommunications Policy of 2060 (Nepali calendar) encourages private sector participation and aims to attract investments to the telecom sector. It also permits foreign investment but clearly stipulates a minimum 20 percent shareholding by domestic investors. Starlink appears hesitant regarding this point. “Policy changes about where to steer the entire telecom sector is one matter. But we are not going to change rules just so that any company can invest 100 percent here,” the minister expressed.

During the meeting, it was also disclosed that Starlink is in discussions with some local service providers for potential business partnerships. Subash Khadka, CEO of the Internet Service Providers Association of Nepal (ISPAN), said the association is collectively interested in negotiating with Starlink on such matters.

What is Starlink? Starlink is operated by Elon Musk’s company, SpaceX. It claims to provide high-speed, low-latency internet service worldwide via a network of over 10,000 satellites. Its service is said to be particularly significant in rural and underserved areas.

In South Asia, Starlink’s service is available in Bangladesh, Sri Lanka, and Bhutan, while it is awaiting regulatory approval in Pakistan and India. Starlink has not yet specified the service launch date for Nepal. Experts note that Starlink’s satellite internet technology differs technically from traditional providers.

Pradeep Paudyal, Assistant Spokesperson for the Nepal Telecommunications Authority, explained, “Satellite internet has existed before. We use VSAT technology here. Satellites working in higher Earth orbit operate differently, while Starlink satellites orbit closer, which enables faster signal transmission and results in lower latency. The signal quality is also expected to be better.”

Subash Khadka of ISPAN noted that most providers currently use fiber technology, which has expanded to remote areas of Nepal. Khadka said, “Introducing technology is not a challenge for us, but managing operating costs, investment recovery, and customer access to ensure good service is very important.” Reports suggest Starlink’s service is generally more expensive than traditional internet services. It remains unclear how affordable Starlink will be in Nepal.

“Today, Nepal ranks among the top 10 countries with cheap internet service,” Khadka pointed out. Although there are over 100 internet service providers in Nepal, only about 38 to 41 are active. Since 2023, Starlink has shown interest in expanding services in Nepal. Later in 2024, Elon Musk also engaged in a virtual dialogue with then-Prime Minister KP Sharma Oli regarding this matter.