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SpaceX's Starlink struggles to secure Vietnam deal amid ownership concerns

Ollie Chang, Taipei; Vyra Wu, DIGITIMES Asia 0

Credit: AFP

In the high-stakes world of satellite communication, SpaceX finds itself entangled in a diplomatic deadlock as it seeks to roll out its Starlink service in Vietnam. Despite months of negotiations, sources reveal that the Vietnamese government remains apprehensive, citing worries over SpaceX's foreign ownership stakes.

Reports from informed sources indicate that talks have hit an impasse, leading to the suspension of SpaceX's ambitious plans to provide satellite communication services in the region. This setback affects civilian connectivity and disrupts SpaceX's support for local coast guard operations, which rely on the company's innovative drone technology.

Vietnam's recent efforts to upgrade its network infrastructure, particularly in remote mountainous and maritime areas, underscore the critical need for reliable satellite services. However, concerns about foreign influence and control over national communication assets have prompted Vietnamese authorities to tread cautiously in granting approvals.

Despite SpaceX's persistence and attempts to reassure Vietnamese officials, the road ahead remains uncertain. Both parties have remained tight-lipped about the possibility of resuming negotiations, leaving the fate of Starlink in Vietnam hanging in the balance.

Meanwhile, Vietnam's stringent regulatory framework, including laws governing telecommunications and foreign investment, adds further complexity to SpaceX's endeavors. The government's insistence on local infrastructure requirements reflects its determination to maintain sovereignty over its communication networks, even as it navigates the challenges of border disputes with neighboring countries.

In India, similar concerns over foreign investment and ownership disclosure have posed hurdles for SpaceX's expansion plans. The company's refusal to disclose detailed equity information has led to regulatory scrutiny and delays in obtaining necessary approvals for its operations.

As SpaceX seeks to overcome these obstacles and carve out a foothold in the fiercely competitive satellite communication market, its experiences in Vietnam and India serve as cautionary tales of the complexities and pitfalls inherent in navigating geopolitics and regulatory landscapes.