P.M. Briceño – “… they want it all, and we can’t allow that.”
BELIZE CITY, Wed. Jan. 22, 2025
The Public Utilities Commission (PUC) has denied a Class License application for a Belize subsidiary of multi-billionaire Elon Musk’s SpaceX to become an Internet Service Provider (ISP) in Belize. SpaceX developed the Starlink project to provide stable satellite internet service even in remote areas with little physical infrastructure requirement. Under its standard service, it offers personal and business plans with download speeds of 30-150 Mbps and 20 Mbps upload speeds, whereas its priority service features speeds of 40-200 Mbps and 25 Mbps, respectively.
SpaceX submitted its application under local company, Starlink Belize LLC (SBL), dated September 12, 2024, and paid the application fee on October 8. Specifically, it had applied to provide fixed broadband internet services to the public as well as mobile internet services for aeronautical, maritime and terrestrial use. After over three months, the PUC only approved the importation and operation of Starlink devices for fixed broadband services by end-users in particular circumstances. These include for areas currently unserved and underserved by existing licensees, for emergency situations and for vessels and aircrafts. In the case of the latter, the PUC ordered that the use of Starlink devices must follow “the terms and conditions set forth for Earth Station in-Motion (ESIM) usage, in accordance with existing regulations.” When it comes to emergency situations, end-users can import and operate Starlink terminals in the aftermath of a natural disaster “when other service providers are unable to provide emergency service” and business, disaster recovery and education could be impacted.
According to the application, SBL would not need to have any physical presence in Belize to provide service to its customers, as SpaceX’s Network Operations Center and their customer success teams would directly handle the provision of service and address any connection issues with 24/7 support. The PUC describes this as a foreign-based, direct-sales-to-customers model, yielding limited “contribution to national revenue through taxes and other financial commitments.”
On the point made by industry stakeholders that granting a Class License to a foreign entity “raises issues regarding data sovereignty, security risks and compliance with local data protection laws in Belize,” the PUC stated that it is “unaware of legislation mandating the need to store and process data locally in order to protect citizens’ privacy and ensure data sovereignty.”
In delivering its decision, the PUC shared the view that Starlink devices can assist with scientific research in remote areas, national security/border control, rural education and telehealth services, and disaster recovery, among others.
Importantly, as part of its decision, the PUC is now mandating the registration of all Starlink devices or other satellite-based terminals already in country. This should be done within 60 days of the decision issued on January 20. The deadline is therefore March 21, 2025. The portal on the PUC website (via the Spectrum Online Center) will become available in the week of January 27. The PUC intends to review applications of new users on a case-by-case basis. The Commission emphasizes that new users must obtain a PUC Satellite End-User Terminal License before seeking to import their equipment. Therefore, the public is advised not to purchase equipment beforehand. Once a license is approved, end-users can then proceed to apply for an importation permit which costs BZ$25.
As readers may recall, we had reported that both national telecoms providers, Belize Telemedia Limited (BTL) and Speednet Communications Ltd. had objected to Starlink being given a license. So did the Social Security Board, a major shareholder in BTL. The PUC does note, though, that they also received comments in support of the application. This was particularly the case for people who live in remote areas. One notable comment in objection to a Class License pointed to the French regulatory authority Arcep at some point revoking Starlink’s license “due to market disruption concerns and vertical integration risks.” The same concerned member of the public also pointed to the U.S. Federal Communications Commission (FCC) similarly flagging “anti-competitive behavior after Starlink achieved control of nearly two-thirds of all active satellites in orbit, warning that this monopoly limits competition and long-term sustainability in the telecommunications sector.” In the case of BTL, they submitted a petition with the signatures of scores of employees objecting to the granting of a Class License to Starlink.
During a press conference on Monday, Amandala asked if allowing the use of Starlink in remote areas will impact the future expansion plans of BTL and Smart. Abraham Teck, the PUC’s Director of Regulated Services shared that there will be some areas that existing companies will never be able to service because it would simply not be economically feasible. He used an example of an end-user living behind several mountain tops that local licensees would never connect because the company would not recover their investment. At the same time, Teck emphasized that there is competition and Starlink is not the only satellite internet provider in global telecoms. Likewise, he says if local licensees are ever able to enter the unserved market, the consumer would choose who provides the better rates.
As to the pricing of the Starlink user terminals, SBL only provided the PUC with pricing for Trinidad and Tobago and El Salvador, stating that those reflect an average of what would be the fees for Belize. According to Trinidad and Tobago Computer Society, a Starlink device costs USD$575 while the monthly service fee is approximately USD$54. In its discussion of matters arising from the SBL application, the PUC cited one case in which Starlink almost doubled its subscription fee without regulatory approval in Nigeria. In the case of Belize though, the PUC does not tend to regulate rates for telecommunication services unless in the case of a monopoly.
Commenting on the PUC decision today, Prime Minister John Briceño stated that they encouraged Starlink “to have resellers, work with BTL, work with Smart, work with the cable companies; but they want it all, and we can’t allow that.” He described the decision of allowing the importation of the Starlink devices as “the best compromise.”
On a related note, the PUC in its decision notes that it expects to see more applications from similar entities. It lists Amazon’s Project Kuiper, One Web and Telesat as options that exist internationally.