Starlink, Visiting Government Offices Again, Asks: Why Is It Difficult Only in Nepal?
साउन ६, २०८२ १२:२९
Kathmandu: Billionaire Elon Musk’s satellite internet company Starlink has resumed visits to government offices in an effort to launch its services in Nepal. But due to Nepal’s legal restrictions that prohibit operation with 100% foreign investment, the company’s entry remains uncertain.
Recently, a Starlink representative met Radhika Aryal, Secretary of the Ministry of Communications and Information Technology, and asked, “Why is it so difficult to start the service only in Nepal?” Starlink has remained firm on its condition to operate through a company with full foreign ownership, while the government insists that existing provisions in the Telecommunications Policy 2060 must be followed.
Nepal’s telecommunications policy allows foreign investors to own only up to 80% of a telecom service provider. The remaining 20% must be held by a Nepali partner. However, Starlink, which is rapidly expanding worldwide, is unwilling to offer partnership stakes to any local entity anywhere in the world.
This provision has blocked the company’s entry into Nepal. During discussions, Starlink representatives said they are willing to assign equipment sales and marketing to a Nepali company, but they will not share any percentage of internet service revenue with local partners.
Diplomatic Pressure and Attempts to Influence the New Law
Starlink has also continued diplomatic lobbying through the U.S. Embassy to ease its entry into Nepal. The Ministry of Communications is currently drafting a new telecommunications bill. According to ministry sources, both Starlink and the U.S. Embassy are lobbying to eliminate the foreign investment cap from the new draft.
“As it happens, Starlink wants to enter Nepal with full foreign ownership. They are continuously increasing pressure through the embassy to remove the current obstacle in the upcoming bill,” a source told TechPana.
Starlink’s Global Licensing and Market Activation Director, Rebecca Slick Hunter, last met with top officials including Communications Secretary Aryal and then-Nepal Telecommunication Authority Chair Bhupendra Bhandari on June 29. The meeting was arranged by a U.S. Embassy official. However, Communications Minister Prithvi Subba Gurung’s secretariat has stated there was no meeting with the minister on June 29. Starlink representatives had met Minister Gurung and other officials through coordination by the then U.S. Ambassador to Nepal, Dean Thompson a year ago as well.
Government’s Firm Stance Disappoints Starlink
Government officials maintain they cannot offer exceptions only to Starlink, as all service providers are required to comply with existing law. They argue that no decision can override the provisions outlined in the telecommunications policy. Starlink representatives, however, expressed disappointment during the meeting.
“Other countries say, ‘Come on, what should we facilitate?’ But we couldn’t understand what Nepal is trying to do,” a source quoted the representatives as saying. “No matter what happens, we will not back down. Our efforts will continue.”
Meanwhile, Starlink has attempted to register a company named Starlink Holdings Netherlands BV, based in the Netherlands, with 100% investment in Nepal. When the Ministry of Communications requested an opinion from the Authority on this, the Authority replied that while the company can be registered, an operating license will only be issued after completing all necessary procedures. Starlink has appointed advocate Anupraj Upreti from Pioneer Law Associates to handle legal matters in Nepal.
What’s Happening in Other South Asian Countries?
Starlink has already secured final approval to operate in several South Asian countries, including Bhutan, Bangladesh, and Sri Lanka.
Bhutan granted a license to Starlink last year, and the company began rolling out its services there in the final month of 2024, the first South Asian country to do so. In Bangladesh, the service began two months ago, while in Sri Lanka, operations started on June 2.
India also issued a license last month. The service is expected to begin within a few months, pending additional technical clearances. Starlink has already formed strategic partnerships with major Indian telecom companies Bharti Airtel and Reliance Jio for hardware distribution.
In Pakistan, Starlink has received a provisional no-objection certificate. Four months ago, it registered a sister company there. The Pakistani government is expected to issue a full license soon, once all technical and regulatory requirements are met.
Starlink is operating in all these countries with 100% foreign investment and without a local partner. Nepal’s 20% local ownership requirement, therefore, has become the primary barrier preventing Starlink from entering the market.
पछिल्लो अध्यावधिक: साउन ६, २०८२ १२:२९
