Starlink seeks Nepal entry, but foreign ownership laws pose hurdle

Elon Musk's Starlink is actively pursuing entry into Nepal's burgeoning internet market, signaling renewed interest after the formation of a new government. This push aligns with U.S. priorities for enhanced internet connectivity in Nepal, with U.S. officials, including Under Secretary of State Sarah Rogers, raising the issue during recent high-level visits.

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internet connectivity is a US priority in Nepal and she also raised the issue of digital sovereignty and digital cooperation with Minister Timilsina.

Rebecca Hunter, director of Starlink, met with Nepal's Minister for Communications and Information Technology, Bikram Timilsina, to discuss operational expansion. Hunter indicated that Starlink's primary obstacle is Nepal's regulatory framework, which mandates local partnerships and limits full foreign ownership. Starlink reportedly prefers operating with complete or near-complete control, a stance that directly clashes with Nepal's telecom rules.

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Starlink wishes to obtain permission to operate internet services in Nepal but has been unable to secure approval due to certain policy and legal complexities. She expressed the view that approval could only be granted if the license is under 100 percent Starlink ownership.

While Starlink aims to provide high-speed satellite internet, particularly beneficial for Nepal's mountainous terrain, its entry faces significant opposition from local internet service providers. These companies fear substantial business losses and widespread layoffs if Starlink, backed by SpaceX, gains a foothold. Minister Timilsina has stated that Starlink can operate in Nepal provided it complies with all legal procedures and telecommunications policies, emphasizing that the government's stance is firm on regulatory adherence.

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Though it is a private US company, Starlink will provide reliable internet service, but it is up to Nepal.