SpaceX’s Starlink has secured a significant contract from Mexico’s state energy firm, the Comision Federal de Electricidad (CFE), to provide internet services in rural areas of the country until December 2026.
The contract, valued between 887.5 million pesos ($51 million) and 1.8 billion pesos ($101 million), was awarded to Starlink over two other competitors because it offered the best price conditions, as stated in the CFE documents reviewed by Reuters. The decision is part of Mexico’s broader effort to expand internet access throughout its rural regions.
Starlink’s satellite internet service, which provides global internet coverage, aligns with President López Obrador’s administration’s focus on providing internet connectivity in isolated areas. The contract, which was awarded in October, started last month and will run until December 31, 2026.
This isn’t Starlink’s first foray into the Mexican market. The satellite internet company has previously collaborated with Mexican firm GlobalSat to deliver internet services to residents in remote areas. GlobalSat has already secured two CFE contracts and has been utilizing Starlink antennas since February, demonstrating the potential for improving connectivity in underserved regions.
Elon Musk’s presence in Mexico is not limited to Starlink. He is also establishing a Tesla Gigafactory in Nuevo León, an investment that is expected to significantly boost the local economy. The exact timeline for when construction will begin is still unclear, but the company recently received all the permits required in order to do so.
