SpaceX is once again attempting to bring its Starlink satellite internet service to Nepal, but the company’s expansion plans are running into resistance over the country’s foreign ownership laws.
The latest push came this week after Rebecca Hunter, a director at Starlink, met with Nepal’s Minister for Communications and Information Technology, Bikram Timilsina, in Kathmandu to discuss the possibility of launching services in the country.
Nepal’s Ownership Rules Create Roadblock
According to local media reports, Starlink told government officials it wants approval to operate in Nepal under full ownership control. That request conflicts directly with Nepal’s current telecommunications regulations, which limit foreign ownership in internet service providers to 80%, requiring at least a 20% local partnership stake.
Starlink has reportedly maintained that it prefers to operate independently without local ownership partners.
Nepal’s communications minister appeared open to the company entering the market, but made it clear the company would have to follow existing laws and procedures.
“Though it is a private US company, Starlink will provide reliable internet service, but it is up to Nepal,” said Sarah Rogers, the visiting US Under Secretary of State, during a press conference in Kathmandu. (via Kathmandu Post)
Starlink Continues Expanding Across South Asia
The renewed interest comes as Starlink continues rapidly expanding across South Asia. The company has already launched in countries including Bhutan, Bangladesh, and Sri Lanka, while India recently granted the company a five-year commercial license. Nepal now stands out as one of the few remaining countries in the region where Starlink is still unavailable.
The service could be particularly valuable in Nepal due to its mountainous geography, where traditional fibre infrastructure is difficult and expensive to deploy. Starlink’s low-Earth orbit satellite network is designed specifically to provide internet access in remote and underserved regions.
Similar Regulatory Challenges in South Africa
Nepal isn’t the only country where Starlink is facing regulatory challenges like this. In South Africa, the company has refused to comply with local ownership requirements tied to the country’s telecommunications laws. South African regulations require foreign telecom operators to include ownership participation from historically disadvantaged groups as part of the country’s Black Economic Empowerment (BEE) framework.
Starlink has so far declined to restructure its ownership model to meet those requirements, preventing the company from officially launching services in the country despite strong demand.
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