Governments around the world are reportedly approving and subscribing to SpaceX's Starlink satellite Internet services to appease the current US administration amid ongoing trade disputes.
An internal US State Department memo obtained by the Washington Post reportedly read: “As the government of Lesotho negotiates a trade deal with the United States, it hopes that licensing Starlink demonstrates goodwill and intent to welcome US businesses.”
The small African nation had held a meeting with representatives of Starlink less than a fortnight after President Donald Trump announced 50 percent tariffs on the country. The Lesotho government had been interested in satellite solutions, but quickly awarded Starlink with the nation’s first-ever satellite Internet service license after Liberation Day, a ten-year contract.
Starlink also saw partial accommodations with Somalia, the Democratic Republic of Congo, Bangladesh, Pakistan, and Vietnam, as well as distribution deals with two providers in India in March.
The Washington Post, bought by Amazon billionaire Jeff Bezos in 2013, claims to possess a trail of similar internal messages revealing how US embassies and the State Department have pressured nations and cleared hurdles for US satellite companies, often mentioning Starlink by name, and showing Secretary of State Marco Rubio instructing officials to push for regulatory approvals for the company.
In response to the allegations, the State Department commented: “Starlink is an American-made product that has been game-changing in helping remote areas around the world gain internet connectivity. Any patriotic American should want to see an American company’s success on the global stage, especially over compromised Chinese competitors.”
Although the Biden administration performed similar actions, they explicitly identified a diversity of LEO options advocating to “increase the number of available LEO vendors.”
W. Gyude Moore, a fellow at the Center for Global Development, a Washington-based think tank, told the Post it appeared African officials found it difficult to disentangle US Government demands from Musk’s.
“People can conclude for themselves that Musk is close to Trump, and if I stall his business here, it could affect my country,” Moore said. “They can see their life might be a lot easier if seen or perceived as getting along with Elon Musk.”
Battle of the billionaires?
Amazon’s Kuiper constellation, which has begun launching its 3,236-strong constellation as of April 9th this year, intends to compete with Starlink, likely capitalizing on the poor sentiment attached to Musk’s political ambitions abroad.
“Jeff Bezos is not the lightning rod that Musk has become,” a specialist in corporate finance M&A with the satellite industry told DCD. Which he suggested could translate to success in Europe and beyond. “Musk has spooked a lot of people from US dependence.”
Barclays estimates Kuiper’s revenue would represent $61 billion by 2030 made up of $26 billion in consumer segments and $25bn in business & enterprise such as data centers, as well as aviation, and maritime connectivity.
Though Starlink’s significant first-mover advantage could cement a leading position, with over 7,000 satellites already orbiting in its constellation and a planned 12,000 satellites when fully rolled out.
“Now that Kuiper is on the verge of its massive launch campaign, the satellite broadband business increasingly looks like a battle of titans, with the traditional players caught in the middle,” explained Caleb Henry, director of rResearch at Quilty Space in September 2024.
