KP Sharma
After a meeting last week between the government and Rebecca Hunter, director of Global Licensing at Starlink, GovTech is assessing the potential impact of introducing Starlink in Bhutan.
Starlink is a satellite internet constellation operated by Starlink Services, LLC, a wholly-owned subsidiary of American aerospace company SpaceX, providing coverage to 80 countries.
According to a press release from GovTech, the lead agency conducting the assessment, the findings will be submitted to the Cabinet for further discussion and planning.
The GovTech stated that the discussions focused on the technical aspects of Starlink’s satellite constellation and user terminals, the quality of services provided in other countries, and Starlink’s global business models.
This announcement comes at a time when Bhutanese citizens face high internet costs, which have hindered the growth of technology-related industries in the country.
Lyonchhen Tshering Tobgay, along with officials from GovTech, the Bhutan Info-Comm and Media Authority (BICMA), and Druk Holding and Investments (DHI), attended the meeting with the Starlink director.
Starlink is expected to drastically reduce internet cost in the country.
If the study concludes that Starlink is beneficial for Bhutan, the company will have to obtain a government licence and begin operations after completing regulatory procedures.
Given that the proposal to start the service originated from the government, the licensing process is expected to be straightforward.
During the election, the government promised to reduce telecom-related charges, such as data charges, by 50 percent or match rates in India. In a recent Parliament session, Lyonchhen Tshering Tobgay pledged to negotiate with the two existing telecom operators this year to reduce talk time, data charges, and internet cost. He said that if negotiations do not go as planned, the government might introduce a new telecom company, including Starlink, as a third internet gateway.
Potential benefits
for Bhutan
Experts believe Starlink could be highly beneficial in areas where traditional internet services, including fiber-optic cables, are not yet available.
Laying fiber-optic cables across Bhutan’s rugged terrain is both logistically challenging and prohibitively expensive, making Starlink a suitable alternative.
Currently, many rural areas in Bhutan lack reliable internet access, which hampers educational opportunities, economic development, and access to healthcare.
Starlink’s satellite internet could bridge this digital divide and foster inclusive development.
Further, improved internet connectivity would significantly bolster Bhutan’s education sector.
Online learning, which became prominent during the Covid-19 pandemic, requires reliable internet access. Starlink’s services could support e-learning platforms by providing students in remote areas with access to quality educational resources.
In the healthcare sector, Starlink could enable telemedicine services, allowing remote consultations and diagnostics.
This would be particularly beneficial in Bhutan, where many communities are isolated by difficult terrain.
Experts say that enhanced connectivity would enable healthcare professionals to provide timely medical advice and treatment to patients who would otherwise have to travel long distances to reach medical facilities.
Starlink has the potential to stimulate economic growth by enabling e-commerce and digital entrepreneurship.
Small businesses and startups in Bhutan could reach a global market, presenting their products online and contributing to the local economy where digital platforms could attract foreign investment and create job opportunities in the country.
Cost and implications
While the initial cost of Starlink may be high, the long-term benefits of high-speed internet could justify the initial financial outlay.
Experts suggest that the government could explore subsidies or partnerships with Starlink to make the service more affordable for Bhutanese citizens.
The economic benefits derived from improved connectivity, such as increased tourism, better educational outcomes, and enhanced healthcare services, could help offset the cost.
However, the introduction of Starlink could impact the business of existing service providers, Bhutan Telecom and Tashicell.
Starlink’s high-speed service may attract more users, threatening the market share of these providers.
A lecturer at the College of Science and Technology said that existing service providers would have to compete in terms of speed and service quality to maintain their market position.