Starlink Surpasses 150,000 Users in Mexico

Starlink has experienced significant growth in Mexico, adding over 150,000 customers since entering the market and establishing itself as a leader in the burgeoning  satellite internet sector, according to data submitted by the to the Federal Telecommunications Institute (IFT).  This expansion has been largely driven by lucrative contracts with the current government, enabling the company to provide services in remote areas.

Globally, Starlink has expanded rapidly, operating in nearly 75 countries and regions with a customer base exceeding three million. 

The IFT points out that  Starlink’s market share in the  fixed satellite internet sector is 0.32%, outpacing main competitors HughesNet, GlobalSat, and StarGroup. Mexican customers interested in acquiring a Starlink antenna must pay approximately US$313 upfront for the hardware, with monthly service fees of about US$55. These costs are higher compared to the average monthly broadband cost of around US$28 in Mexico, according to Cable.co.uk.

Starlink’s Contracts in Mexico

In November 2023, Starlink secured two contracts through a Federal Electricity Commission (CFE) tender. Together, these contracts are valued at approximately US$177,000 and aim to advance the Federal Telecommunications and Internet for All (CFE-TEIT) program’s objectives.

The first contract, valued between US$41.3 million and US$82.5 million, enables Starlink to provide free internet access in remote and inaccessible regions. The second contract, with a minimum value of US$47.1 million and a maximum of US$94.3 million, focuses on expanding cellular service coverage in disconnected communities. Both contracts are valid until December 2026.

Starlink in Latin America

The enterprise market is another crucial area for Starlink's business development. The company has formed a strategic partnership with Telefónica Global Solution (TGS) to provide its mobile and fixed satellite services to companies in the retail and banking sectors. This agreement covers Mexico, Peru, Colombia, Chile, Brazil, and Spain. 

"The satellite industry is undergoing an unprecedented transformation. Satellite technology enables quick and efficient connectivity projects," said Julio Beamonte, CEO, Telefónica Global Solutions.

In June, Starlink introduced "Starlink Mini" in several Latin American countries, including Colombia, El Salvador, Guatemala, and Panama. This compact, portable hardware is designed to provide high-speed, low-latency satellite internet, ideal for mobile users. Currently, Starlink Mini is available through an invitation-only program, with plans for broader availability in the future.

Despite its growing presence in Mexico and Latin America, Starlink faces significant commercial challenges. Experts note that competition in the sector is intensifying as new entrants aim to capture a share of the rapidly expanding market, according to Wired.

Jorge Moreno Loza, a telecommunications lawyer, told Expansión that Starlink's alliances with the government and its technological and economic strength position it advantageously against slower-growing competitors in a sector that still grapples with high costs compared to other services.

The information and communications technology (ICT) industry in Mexico saw a 6.9% year-on-year revenue increase, reaching US$334 million in the first four months of 2023, according to Select. This growth is driven by rising demand for digital business solutions, partnerships to enhance ICT coverage, and a swift shift toward cloud services.