Bangladesh has formally authorised Starlink, the satellite internet service operated by Elon Musk’s SpaceX, to export bandwidth to neighbouring countries, opening a potential technical route into Nepal even as regulatory hurdles continue to prevent the company from launching commercial services in the country.

The Bangladesh Telecommunication Regulatory Commission (BTRC) recently granted Starlink permission to carry cross-border internet traffic using infrastructure based in Bangladesh. Industry experts say the decision could transform Bangladesh into a regional transit hub for satellite internet services serving landlocked neighbours such as Nepal and Bhutan.

Under the new arrangement, Starlink will be able to receive international bandwidth through Bangladesh’s submarine cable network and transmit it to users in neighbouring countries via its satellite constellation. According to Bangladeshi media reports, the country has allowed the export of unfiltered bandwidth through this mechanism.

Mustafa Mahmud Hossain, managing director of Puku.sh and a satellite communications expert in Bangladesh, said the remaining obstacle now lies with Nepal’s regulatory approval.

“If the Government of Nepal grants permission, Nepali users will be able to access Starlink services without difficulty,” Hossain told Kantipur. He described the system as a ‘bent-pipe architecture with a foreign anchor’.

“The signal is transmitted from a Starlink dish installed at a customer’s home in Nepal to a satellite orbiting about 550 kilometres above the Earth,” he said. “Technically, apart from the user terminal on Nepali soil, no additional hardware, gateway or server is required inside Nepal.”

Indian media have described Bangladesh’s decision as a strategic breakthrough for Starlink. The company has spent the past four years attempting to secure regulatory approval in India, where concerns over data security, spectrum allocation and licensing have delayed commercial operations.

Technology analysts say the Bangladesh route allows Starlink to establish a stronger regional presence while India’s approval process continues. Bangladesh, meanwhile, is expected to earn foreign currency by exporting bandwidth through its telecommunications infrastructure.

Starlink has been trying to enter the Nepali market for several years. More recently, the company renewed its efforts after Rebecca Hunter, one of its directors, visited Kathmandu and met Minister for Communications and Information Technology Bikram Timilsina. During the meeting, Hunter reiterated the company’s interest in launching services in Nepal but expressed frustration over legal and policy barriers that have delayed approval.

Starlink founder Elon Musk had also previously discussed Nepal during a virtual conversation with then prime minister KP Sharma Oli, expressing his desire to provide Starlink connectivity even on the summit of Mount Everest.

Meanwhile, complaints have continued to surface that Starlink terminals are already being used illegally in Nepal’s Himalayan region, particularly by foreign trekkers and expedition groups.

According to Pradeep Paudyal, assistant spokesperson for the Nepal Telecommunications Authority (NTA), Starlink cannot legally provide services directly to customers in Nepal without obtaining the required licences. “The company must first register in Nepal and obtain permission before selling internet services directly to consumers or downlinking satellite signals within Nepali territory,” Paudyal said.

He, however, clarified that Nepali internet service providers remain free to purchase wholesale bandwidth from any licensed international satellite operator.

“Choosing which country or company to buy bandwidth from is a commercial decision for Nepali operators,” Paudel said. “The government does not restrict operators from sourcing bandwidth internationally, so Bangladesh’s latest decision simply creates another possible option.”

Several Nepali companies already purchase satellite bandwidth from foreign providers and resell it domestically. At present, two companies hold Global Mobile Personal Communications by Satellite (GMPCS) licences in Nepal—Constellation Pvt Ltd, based in Sanepa, and iFour Technology in Kamaladi. Constellation has been providing satellite communications and internet services since 2002 using the UAE-based Thuraya satellite network.

Sanatan Gajurel of Constellation said that illegal satellite communications have severely affected legitimate operators. “Our legal business has been badly damaged because satellite phones are being used illegally in Nepal’s high mountain regions,” said Gajurel. “To avoid attention, only limited users receive authorised services around Everest Base Camp, but illegal satellite internet is openly operating in Camps II and III.”

The NTA maintains that Starlink cannot begin commercial operations unless it either establishes a licensed local entity or partners with an authorised Nepali operator.

The principal policy obstacle remains Nepal’s foreign investment rules. Under existing telecommunications regulations, foreign investors may own up to 80 percent of an internet service provider, while the remaining 20 percent must be held by a domestic partner. Starlink, however, has consistently sought full foreign ownership of its local operations.

Officials say this disagreement has become one of the main reasons the company has yet to obtain a commercial licence. Hunter told Communications Minister Timilsina that discussions had already taken place with potential local partners. Several internet service providers and information technology companies are understood to have expressed interest in collaborating with Starlink.

Industry experts also point to differences in technology. Existing GMPCS operators in Nepal rely on geostationary satellites positioned much farther from Earth, making services comparatively slower and significantly more expensive. Starlink’s low-Earth-orbit satellites offer lower latency and substantially cheaper pricing, making them particularly attractive for remote communities and international visitors.

Officials say many foreign trekkers have already chosen Starlink because of its lower cost and better performance.

In a recent interview with Kantipur, Timilsina reiterated that Nepal welcomes any company willing to comply with domestic laws. “It would not be appropriate to amend legislation solely for one company,” he said. “Any company that operates within Nepal’s existing legal framework is welcome.”

The minister acknowledged the importance of satellite internet in geographically isolated areas but questioned whether the service would be economically viable for widespread deployment across Nepal.

Some domestic internet providers argue that illegal satellite services are already depriving Nepal of tax revenue and creating security risks. One operator claimed tourists have openly livestreamed on social media from Everest Base Camp for several years using foreign satellite devices without regulatory oversight.

“When devices and SIMs purchased abroad operate on Nepal’s frequencies, the spectrum is used here but the revenue goes to the country where the service was purchased,” said the operator. “It also becomes extremely difficult to trace users involved in illegal activities, raising concerns over both national security and revenue collection.”

Following similar complaints last year, the NTA issued a public notice warning against the unauthorised use of foreign satellite communication devices.

Paudyal said Bangladesh’s latest decision is unlikely to trigger an immediate surge in illegal Starlink use but acknowledged that regulators would closely study its implications.

Bangladesh joins Bhutan and Sri Lanka in allowing Starlink to operate, while India continues processing security clearance and spectrum allocation. Despite Bangladesh opening a technical pathway, Nepal remains marked on Starlink’s official availability map as a country where the launch date is still unknown, underscoring that policy, rather than technology, remains the biggest obstacle.