Starlink has received approval from Bhutan’s Information, Communication and Media Authority (BICMA) to launch its high-speed satellite-based internet services in Bhutan.
BICMA officials revealed that they carefully examined several factors before granting Starlink its licence. The approval was contingent upon Starlink registering as a foreign direct investment (FDI) company, appointing local representatives to comply with regulatory requirements, and ensuring that service quality and data privacy would be protected.
The licence granted to Starlink strictly covers internet services through user terminals and does not extend to satellite-to-mobile cellular services.
A major issue raised by Bhutanese consumers has been the need to make payments in local currency rather than in USD. BICMA has directed Starlink Services Private Limited to enable payments in Ngultrum. The company is currently working on integrating local payment systems, and until the process is complete, Starlink’s services will remain inactive in Bhutan. No timeline has been provided for the commercial launch.
Once the payment system is operational, Starlink will introduce an official registration portal for users.
TashiCell’s Concerns
TashiCell, one of Bhutan’s two primary internet service providers, has acknowledged the competitive pressures posed by Starlink’s entry, particularly concerning pricing and service quality. The company has already been facing challenges due to government mandates to lower mobile data and leased line rates.
To remain competitive, TashiCell is working on expanding its 4G and 5G networks to enhance coverage and capacity, which it hopes will help reduce prices while ensuring quality. However, TashiCell’s officials noted that balancing these factors remains a challenge in Bhutan’s evolving telecommunications market.
TashiCell is also increasing its fibre-to-the-home (FTTH) infrastructure in urban areas. One of the significant obstacles faced in this expansion is obtaining government approvals for underground trenching to lay fibre cables. Should these delays continue, the company may resort to installing overhead fibre lines to improve connectivity.
Collaboration Opportunities with Starlink
TashiCell also highlighted that Starlink will likely serve remote areas, but it pointed out that most populated regions in Bhutan are already covered by mobile networks through the government’s Rural Communication Programme. The company suggested that Starlink could be a competitor in both urban and rural markets, with the government’s main objective being to reduce internet costs, not necessarily expand coverage.
TashiCell expressed concerns over national data sovereignty, warning that foreign-owned satellite networks operate outside Bhutan’s regulatory reach. It cited instances where geopolitical tensions led to satellite services being withdrawn in other countries, posing a risk for reliance on foreign providers.
Despite these concerns, TashiCell saw potential for collaboration with Starlink. The company suggested using Starlink to backhaul mobile base stations, providing more reliable connectivity during international fibre outages. TashiCell also identified direct-to-device communication as a potential area for partnership, where mobile devices could connect via satellite in regions lacking terrestrial network coverage.
