Countries facing trade pressures are increasingly granting licenses and approvals to Elon Musk’s Starlink, the satellite internet arm of SpaceX, as part of efforts to improve trade relations.
Recent Developments
Just weeks after a significant tariff announcement, the small African nation of Lesotho approved Starlink’s first-ever satellite internet license, set to last 10 years. This decision was reportedly made to “demonstrate goodwill and intent to welcome U.S. businesses” as Lesotho negotiated trade deals.
Global Expansion
Lesotho is not alone in its efforts to accommodate Starlink. Countries like:
- India
- Cambodia
- Somalia
- Bangladesh
- Pakistan
- Vietnam
- The Democratic Republic of Congo
have also made moves to approve Starlink, often during or after trade talks.
Trade Relations and Starlink Approvals
In India, local officials believed that speeding up Starlink approvals would help cement a broader trade deal with Washington. While the U.S. government has not explicitly demanded regulatory favors for Starlink in exchange for lower tariffs, diplomats have been instructed to advocate for American satellite companies, with Starlink often named directly.
Administration’s Efforts
The administration’s efforts to counter Chinese and Russian telecom providers have led to a focus on supporting American companies, including Starlink. According to a White House spokesperson, “The only consideration in trade negotiations with other countries is what’s best for the American people — which includes American companies succeeding at home and abroad.”
Elon Musk’s Involvement
Musk has contributed significantly to the campaign and holds a position within the administration, overseeing the Department of Government Efficiency Service. Although he has indicated plans to step back from his day-to-day management role, his involvement has raised questions about potential conflicts of interest.
Starlink’s Growth
Starlink has reached 5 million customers as of March, propelling SpaceX’s valuation to an estimated $350 billion. Despite this surge, some industry analysts remain cautious, questioning whether the company’s valuation can be sustained over the long term.
Future Outlook
As Starlink continues to expand globally, it will be important to monitor its growth and potential challenges. With its impressive valuation and increasing customer base, Starlink is poised to play a significant role in the satellite internet industry. However, the company must navigate complex trade relations and potential regulatory hurdles to maintain its momentum.