KATHMANDU: Nepal’s plan to attract global technology companies and expand digital connectivity could face another setback as the government and Starlink remain divided over foreign ownership.
The Nepal Telecommunications Authority (NTA) has retained a provision in its draft Integrated Telecommunications Policy requiring foreign investors entering the telecommunications sector to allocate at least 20 percent ownership to a Nepali partner.
Starlink, the satellite internet company owned by Elon Musk, has consistently sought to operate in Nepal through a wholly owned company. The company has indicated that it would not enter the Nepali market if it were required to surrender equity to a local partner.
The disagreement has become more significant as Starlink expands its satellite network and pursues next-generation services, including direct-to-device (D2D) connectivity, in neighbouring India.
D2D technology allows compatible smartphones and other devices to connect directly with satellites, potentially providing connectivity in areas without conventional mobile networks. Such technology could be particularly useful in Nepal’s remote and mountainous areas, where installing mobile towers and expanding fibre networks can be costly and difficult.
Starlink has already sought greater regulatory flexibility in Nepal. In May, Starlink director Rebecca Slick Hunter met Information and Communications Minister Dr Bikram Timilsina and reiterated the company’s interest in launching internet services in Nepal. She reportedly asked the government to remove or revise foreign-investment restrictions, saying Starlink wanted 100 percent ownership of its Nepali operation.
Hunter also said Starlink was discussing commercial partnerships with Nepali service providers, but those arrangements would cover equipment sales and after-sales services rather than equity ownership.
The 20 percent local-participation requirement is not new. Nepal’s Telecommunications Policy 2003 contains a similar provision.
Former Investment Board Nepal chief executive officer Radhesh Pant said mandatory local ownership could discourage major international investors.
“If a company itself wants to have a local partner, that is different. But if a reputed foreign company wants to invest in Nepal, we should not discourage it by restricting its ownership,” Pant told Nepal All.
He argued that Nepal should strengthen regulation rather than control foreign ownership through mandatory equity requirements.
An NTA deputy director defended the policy, saying local participation could facilitate technology and skills transfer, increase accountability and make regulatory coordination easier.
Starlink is pursuing a wholly owned model in India as well. Its subsidiary, Starlink Satellite Communications Pvt. Ltd., is seeking to retain full ownership while obtaining regulatory approval.
With the NTA maintaining the 20 percent requirement and Starlink insisting on 100 percent ownership, the regulatory impasse could delay the company’s entry into Nepal—and potentially keep its satellite-based connectivity technology out of the country.
