Kathmandu, 23 August (H.S.):

Nepal has rejected a demand from US-based Starlink for 100 per cent ownership of its operations in the country, potentially delaying the company’s plans to launch satellite internet services there. Under Nepal’s new telecommunications policy, foreign investors are required to have a local partner holding at least a 20 per cent stake.

The government’s requirement has, for now, created a hurdle for Starlink, the satellite internet company founded by billionaire Elon Musk, in expanding its services into Nepal.

Nepal’s efforts to bring the global technology company into the country to accelerate digital connectivity and development do not appear to be making immediate progress amid the disagreement over ownership. The Nepal Telecommunications Authority has retained the existing provision requiring foreign investors to have a mandatory local partner.

The draft telecommunications policy recently issued by the government continues the earlier provision under which foreign investors seeking to operate telecommunications services must allocate at least 20 per cent ownership to a local partner. This requirement could make it difficult for Starlink to begin satellite internet services in Nepal.

In May this year, Starlink Director Rebecca Slick Hunter visited Nepal and met Information and Communications Minister Dr. Bikram Timilsina at the ministry. During the meeting, she reiterated the company’s interest in launching internet services in Nepal.

Hunter reportedly made it clear that Starlink would be willing to commence operations only if it could retain 100 per cent ownership under the licence. She indicated that if this condition could not be met, the company would not be able to provide its services in Nepal.

During separate meetings with officials of the Ministry of Communications and the Nepal Telecommunications Authority, Hunter said Starlink does not operate through local partners in any country where it provides services. Instead, the company operates through entities that are fully owned by Starlink.

The ownership dispute therefore remains a key issue between Nepal and Starlink, with the country’s local-partnership requirement currently standing in the way of the company’s proposed satellite internet rollout.

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Hindusthan Samachar / Jun Sarkar