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Starlink, the satellite internet provider operated by Elon Musk’s SpaceX, is planning to expand its operations in the country while its local subsidiary is in the process of securing a congressional franchise, according to the Department of Trade and Industry (DTI).
In a press briefing on Tuesday, March 11, DTI Secretary Cristina Roque said she recently met with executives of Starlink in the United States (US) to discuss their shared goal of pushing digital transformation and improved connectivity.
She, however, noted that the company is currently facing setbacks in the Philippines.
Roque said these challenges include high spectrum user fees, frictions in import and export, and the country’s supposedly outdated telecommunications regulations.
One particular area of concern is Starlink Internet Services Philippines, Inc.’s pursuit of a congressional franchise, which is key in its plan to establish ground gateway stations.
The Trade Secretary said such a franchise is “crucial for improving nationwide connectivity.”
“DTI is committed to fostering an investment-friendly environment for emerging technologies. By addressing regulatory barriers, we aim to accelerate digital transformation and expand high-speed internet access across the country,” she said.
Fiber broadband provider Converge ICT Solutions Inc., one of Starlink’s local partners, confirmed to the DTI that Musk’s company only has a temporary franchise to operate in the country.
The National Telecommunications Commission (NTC) earlier approved the registration of Starlink as a value-added service (VAS) provider, valid until Nov. 30, 2028.
This was granted in accordance with the Satellite Systems Provider and Operator (SSPO) accreditation granted by the Department of Information and Communications Technology (DICT) in 2023.
With a subscriber base of over 100,000 and a growing demand for additional capacity, Starlink is set to construct and operate ground gateway stations in 14 sites across the country.
Essentially, these are stations that can access Starlink’s low-Earth orbit satellites, paving the way for faster internet access.
Republic Act (RA) No. 3846, or the Radio Control Act, states that ground gateway stations are classified as radio stations and therefore require a legislative franchise.
With the support of lawmakers from both the House of Representatives and the Senate, Starlink has begun the process of securing a congressional franchise through House Bill (HB) No. 10954 and Senate Bill (SB) No. 2844.
While these bills are pending, both chambers adopted similar resolutions in January, compelling the NTC to issue a provisional authority to Starlink.
This would allow the company to build, own, and operate earth stations while awaiting the final decision on its congressional franchise application.
For its part, the NTC issued a notice to Starlink, requiring technical submissions of requirements necessary before the provisional authority can be issued.
These documents would ensure compliance with the technical parameters and proper assessment of spectrum user fees charged by the government on telco firms.
According to the DTI, Starlink has yet to submit these requirements.
