Kathmandu– Elon Musk’s satellite internet company, Starlink, entered Bhutan in the first week of December. The entry was facilitated by Bhutan’s government granting operational approval for satellite internet services.
Prior to obtaining approval, Rebecca Slick Hunter, Starlink’s Global Licensing Director, met with Bhutanese Prime Minister Lotay Tshering in July, a meeting that proved to be a breakthrough for Starlink’s entry into the Himalayan kingdom.
Amid geopolitical sensitivities, how did Bhutan manage to smoothly introduce the American company Starlink without facing concerns or pressure from neighboring India?
India has long held a significant influence in Bhutan, particularly in sectors like security, infrastructure, and telecommunications. India’s vigilance about potential threats via neighboring countries is well known, so it raises questions about India’s stance on allowing an American company to provide internet services in its immediate vicinity through sensitive satellite technology.
Recently, Indian security forces in the conflict-ridden state of Manipur reported that insurgents were using Starlink internet, citing evidence of two devices bearing the Starlink logo. India has yet to permit Starlink to operate within its borders, with the proposal still under review by the Ministry of Home Affairs.
Elon Musk is keen to enter India, the world’s largest market. However, allegations of insurgents using Starlink devices have cast doubts on its approval. Musk has denied these allegations, asserting that Starlink’s satellite beams are inactive across India, aligning with the government-imposed communication restrictions in Manipur due to ongoing violence.
India’s government had previously indicated that satellite internet spectrum allocation would be made through administrative decisions rather than auctions, sparking a competitive race between Musk and Indian billionaire Mukesh Ambani. Ambani is positioning Jio as a dominant player in India’s satellite internet market by collaborating with Luxembourg-based SES Astra.
While Bhutan has set service charges for Starlink and commenced operations, India has not yet responded. Bhutan’s decision is viewed as a commitment to prioritize its needs over external pressures. Some speculate that Bhutan’s move to adopt Starlink is linked to its need for reliable internet for cryptocurrency mining, which Bhutan denies. The country has been utilizing excess hydroelectric power for crypto mining as part of its efforts to diversify the economy.
International media have suggested that India does not see Starlink’s entry into Bhutan as a direct threat. Nearly 40% of India’s population still lacks internet access, and the country is focused on expanding digital connectivity rather than curbing new technologies.
Musk had initially planned a visit to India in April to discuss Tesla’s plant setup and Starlink’s entry with Prime Minister Narendra Modi. However, the visit was postponed due to Tesla recalling Cybertrucks over pedal defects. Although Musk promised to visit India in 2024, no new schedule has been announced. Meanwhile, Tesla has resumed efforts to penetrate the Indian market, including negotiations for showroom space in collaboration with Indian real estate developer DLF.
India granting approval to Starlink could also influence Nepal’s decision, according to an official from Nepal’s Ministry of Communication and Information Technology. “Satellite internet involves national security concerns. If India approves Starlink, it may ease geopolitical considerations for Nepal. However, addressing Chinese interests and amending existing laws will be critical,” the official noted.
Rebecca Hunter, who played a key role in Starlink’s entry into Bhutan, is actively engaged in Nepal, having met with the Prime Minister, the Communications Minister, and officials from the Nepal Telecommunications Authority.
Last month, she facilitated a virtual meeting between Elon Musk and former Prime Minister KP Sharma Oli to discuss Starlink’s entry into Nepal. However, with Nepal still drafting a new telecommunications bill, the decision on allowing 100% foreign investment in telecommunications remains pending.
Communications Minister Parbat Gurung has publicly stated that Starlink must comply with Nepal’s laws. Under the current Telecommunications Act, Starlink cannot operate in Nepal due to restrictions allowing only up to 80% foreign investment and requiring a 20% local partnership—terms that Starlink has declined to accept.
