With the formation of a new government in Kathmandu, Elon Musk’s SpaceX, which offers Starlink satellite services, has renewed its interest in Nepal.

During recent high-level visits from the US, almost all visiting US officials have expressed Starlink's desire to expand its services in Nepal.

On Monday, Rebecca Hunter, director of the international satellite-based internet service provider Starlink, met with Minister for Communications and Information Technology Bikram Timilsina at the ministry and discussed the possible expansion of Starlink services in Nepal.

Sarah Rogers, the visiting US Under Secretary of State, also said that internet connectivity is a US priority in Nepal and she also raised the issue of digital sovereignty and digital cooperation with Minister Timilsina.

Later in the day, according to the Ministry of Information and Communications Technology, Hunter stated that Starlink wishes to obtain permission to operate internet services in Nepal but has been unable to secure approval due to certain policy and legal complexities.

She expressed the view that approval could only be granted if the license is under 100 percent Starlink ownership. Starlink is a satellite-based internet service developed by SpaceX that uses low-Earth orbit (LEO) satellites to provide high-speed internet anywhere on Earth. It is especially useful in remote and mountainous regions like Nepal where fiber cables cannot reach.

“Though it is a private US company, Starlink will provide reliable internet service, but it is up to Nepal,” Rogers said during a press conference in Kathmandu.

Since 2022, Musk owned Starlink has maintained interest in expanding its business in Nepal.

Nepal’s telecom rules require foreign telecom operators to partner locally, with Nepali ownership requirements.

Starlink reportedly prefers operating with full or near-full control, which conflicts with Nepal’s regulatory framework.

Hunter also informed the minister that discussions are ongoing with several Nepali service providers regarding potential business partnerships and cooperation.

Many local internet service providers are opposing Starlink's entry fearing loss of business and large-scale layoffs.

During the meeting, Communications Minister Timilsina said there would be no obstacle to operating services in Nepal as long as the company follows legal procedures and complies with Nepal’s telecommunications policies and legal framework.

Hunter had earlier visited Kathmandu and held talks with senior government officials.

During those meetings with government leaders and officials, Starlink officials had promised to provide free internet to some government offices, like health offices and schools in remote areas.

While most South Asian countries have already opened the way for Starlink’s entry, Nepal remains an exception, prompting the company’s representatives to continue lobbying through various channels.

In November 2024, Musk also had a video conference with then prime minister KP Oli and had expressed desire to expand his business in Nepal.

In Nepal, China's Huawei is a dominant player in providing internet infrastructure for both private and government owned telecommunications companies like Nepal Telecom and Ncell.

Some government officials told the Post that China has been expressing reservations about Starlink's proposed entry into Nepal.

Under the immediate past government of Sushila Karki, a proposal was tabled in Cabinet to allow Starlink to expand its service in Nepal, but due to reservations from some Cabinet ministers including then communications minister Jagdish Kharel, the proposal could not move ahead.

According to one minister of the Karki government, Kharel stated that Starlink is associated with broader geopolitical interests linked to US defence policy, which could have repercussions in Nepal's ties with neighbouring India and China.