PH to be First in Southeast Asia with Access to Starlink Following the Entry of SpaceX

On Thursday, the government announced that aerospace company SpaceX — founded by Elon Musk — is set to enter the Philippines. This move could potentially position the country to become the first in Southeast Asia to access “Starlink,” SpaceX’s low earth orbit satellite network constellation, according to the Department of Trade and Industry (DTI). Starlink has attracted a lot of attention over the past few weeks for its actions during the ongoing Russia-Ukraine conflict.

“Preparations are underway for their registration,” said the Trade Department. “At present, their application is being processed and the locations of their gateways are being visited.” Trade Secretary Ramon Lopez furthered that the country would experience better internet speeds and connectivity with the company’s entry, particularly in remote areas with poor telecommunications.

SpaceX is already in the process of establishing a local Filipino entity that will be its wholly-owned subsidiary. Three gateways are also targeted to be deployed during the first phase of their launch. “Their system will augment, as well as complement existing broadband capacities. This will further capacitate micro, small, and medium enterprises (MSMEs), facilitate online learning, e-commerce, and fintech,” explained Lopez.

The DTI affirmed that the company is optimistic about the country’s growing consumer base. Another crucial aspect that prompted SpaceX to enter the Philippines was the signing of the amended Public Service Act (PSA), which now allows full foreign ownership in key industries such as telcos.

The firm is also expected to encourage competition within the country, according to Infrawatch convenor Terry Ridon. “Most certainly, this will be a gamechanger in the country’s internet landscape, with various providers competing for customers through mobile and fixed-line internet,” Ridon elaborated.

“SpaceX will have to compete with the local providers on price, speed, and reliability of service, as SpaceX customers will have to pay at least $710 upfront for their service, against the lower barriers to entry for mobile and fixed-line internet services. This should however be taken as a challenge by local ISPs to improve their current level of service and provide better value for the prices charged to customers.”

Engagements between the government and SpaceX began in November 2021, which later led to a number of online meetings earlier this month following the signing of the amended PSA. “Starlink’s entry into the Philippines sends a positive message to the world: The Philippines is open for business and there’s a sustainable growing demand here for better and alternative ways to connect to the Internet,” noted Better Internet PH lead advocate Grace Mirandilla-Santos. “It’s critical for the government to show that the various reforms it put in place are accompanied by equivalent changes in licensing and regulation that are consistent with the reforms intended by these landmark and innovative policies.”

Source: PhilStar