Why Starlink May Not Be Granted a License to Operate in the Solomon Islands

I hope I am not jumping the gun here!

The license to operate Starlink within the Pacific is falling like dominoes in our small island nations where, traditionally, the cost of the internet is very high compared to developed countries. Vanuatu was the first to decline, followed by Samoa and Tonga; lately, it was Papua New Guinea. Only Fiji has been on the opposite of this trend, granting Starlink an operational license. At the time of writing, Tonga has provided a provisional license for Starlink to put their act together before they’re given a full license.

The prospect of Starlink providing satellite internet in the Solomon Islands has generated considerable discussion. While enhanced connectivity and lower internet costs are appealing, several compelling reasons may prevent Starlink from operating in our country.

Before reading further, a disclaimer: this is a personal view, and none of it has been verified with the authorities or specialists. However, these are probable reasons for not granting Starlink a license in the Solomon Islands.

Unfair Competition with Current ISPs

One of the primary concerns is the potential violation of the Telecommunications Act. Starlink’s entry could be perceived as unfair competition against the current Internet Service Providers (ISPs). Over the years, these ISPs have invested significantly in establishing and maintaining the existing infrastructure, creating jobs and contributing to the local economy. Introducing a global player like Starlink, with its advanced technology and potentially lower costs, could disrupt the market dynamics, making it difficult for local ISPs to compete on both price and service quality. This competition could be seen as undermining the efforts of local companies and may contravene regulatory standards designed to ensure fair play in the industry.

Moreover, the regulatory framework may not be equipped to handle the complexities introduced by a satellite-based service, further complicating compliance and enforcement. Local stakeholders, including governments and regulatory bodies, might also be concerned about the jurisdictional challenges and the potential for monopolistic practices. The implications extend beyond market competition and touch upon data sovereignty and national security issues.

Loss of Tax Benefits

Taxation is a critical component of national revenue. If Starlink were not keen to establish operations locally, it might not contribute as significantly to the tax base as local ISPs. The local economy benefits when companies are based here, hiring local staff and paying taxes. Local businesses also tend to invest in community projects, sponsor local events, and contribute to the economic ecosystem. The Solomon Islands government might be hesitant to grant a license to Starlink if it perceives a risk of losing these crucial tax benefits. Moreover, the presence of local ISPs ensures that customer service and technical support are more accessible, further enhancing the local economic landscape. Thus, Starlink’s potential advantages of global connectivity must be weighed against the tangible benefits of local internet service providers.

Internet Regulation and Security Concerns

Another significant concern is the ability to regulate internet content. The government may be interested in maintaining control over internet usage, including the ability to filter certain content to protect public morals and national security. With Starlink being a global service provider, it might be challenging for the Telecommunications Commission of Solomon Islands (TCSI) to effectively impose and enforce local regulations. This lack of control could be seen as a threat to national security and social stability. Furthermore, the decentralized nature of satellite internet services complicates efforts to monitor and block undesirable content, potentially leading to issues such as the spread of misinformation, cyber threats, and illegal activities. This situation might also undermine existing local businesses and internet service providers that comply with national regulations, creating an uneven playing field and raising concerns about fair competition. As such, the government might need to explore new frameworks and international collaborations to address these emerging challenges effectively.

Recent Investments in Submarine Cables

In 2019, the Australian Government commissioned a new submarine cable network to improve internet connectivity in the Solomon Islands. This investment was substantial, and the return on investment may not have been fully realized yet. Allowing Starlink to operate could jeopardize these returns, as the demand for the new submarine cable services might decrease. The Solomon Islands Government and stakeholders of the Coral Sea Cable and the Solomon Islands Domestic Network may be wary of undermining these recent investments. Additionally, introducing satellite-based internet from Starlink might create a technological disparity, benefiting only those who can afford the service while leaving others dependent on the existing infrastructure. There could also be concerns about the regulatory and security implications of allowing a foreign company to control significant portions of the nation’s internet traffic. Balancing the potential benefits of high-speed satellite internet and protecting local investments presents a complex challenge for policymakers.

Geopolitical Considerations

The geopolitical landscape also plays a role. The Solomon Islands has been strengthening its ties with China, which could influence decisions regarding foreign companies like Starlink. There is a perception that Starlink, as part of SpaceX, might be used as a tool for Western geopolitical purposes. A China-friendly government might resist Starlink’s entry to avoid any diplomatic friction with Beijing. Additionally, there have been instances where technological advancements were met with scrutiny due to underlying political tensions. The Solomon Islands may carefully weigh the potential benefits of Starlink’s services against the risk of jeopardizing its relationship with a significant global power like China. This tug-of-war between technological progress and diplomatic strategy highlights the complex interplay between international relations and technological adoption, making the situation even more nuanced.

Lobbying by Current ISPs

Current ISPs in the Solomon Islands would likely lobby against Starlink’s entry. These companies might argue that Starlink’s lower bandwidth costs and advanced technology create an unfair advantage. They may present that their continued operation is crucial for local employment and economic stability. The government might find these arguments compelling, especially if local ISPs are committed to improving their services and expanding coverage. Additionally, local ISPs could emphasize the importance of nurturing homegrown businesses and their role in maintaining the community’s cultural and social fabric. They might also stress the potential risks of foreign domination in the telecommunications sector, arguing that reliance on an external entity could jeopardize national security and data privacy. The ISPs could further argue that their longstanding presence in the country provides them with unique insights into the specific needs and preferences of the local population, an advantage they claim a newcomer like Starlink would lack.

Limited Regulatory Power

The TCSI may also face challenges in effectively regulating a global service provider like Starlink. The regulatory framework might not be robust enough to handle the complexities of overseeing such an operation. This limitation could be a decisive factor in the decision-making process, as ensuring compliance with local laws and regulations is paramount. Additionally, the rapid technological advancements in satellite communication pose another layer of difficulty, requiring constant updates and revisions to regulatory standards. The cross-border nature of services provided by companies like Starlink further complicates matters, necessitating cooperation and coordination among multiple regulatory bodies worldwide. These intricate dynamics could strain the resources and capabilities of the TCSI, potentially leading to gaps in enforcement and oversight.

Prioritizing Profits Over Public Benefits

Decision-makers might prioritize short-term profits over the long-term benefits of lower-cost, accessible internet for the local population. There could be a reluctance to disrupt existing revenue streams from current ISPs. This short-sighted approach could hinder the overall development and accessibility of internet services in the country. Additionally, the focus on immediate financial gains may result in missed opportunities for technological advancements and improvements in digital infrastructure. The lack of investment in these areas could lead to growing disparities in internet access, further widening the digital divide. Consequently, the country could lag in the global digital economy, affecting education, employment, and innovation. Ultimately, the decision not to prioritize affordable, widespread internet access could have long-lasting negative impacts on society as a whole.

Technological Lag and Government-Owned Infrastructure

The Solomon Islands is still rolling out terrestrial infrastructure, such as the recently announced building of mobile towers. This government-owned infrastructure, financed by loans from the People’s Republic of China (PRC), is crucial for local connectivity. Allowing Starlink might render these investments obsolete, causing financial and technological setbacks. The government might prefer to see a return on its investments in terrestrial infrastructure before considering alternative options like satellite internet. Additionally, the economic implications of switching to satellite internet are significant. The financial obligations tied to the loans from the PRC could create a complex situation where the government must balance maintaining these international relationships and adapting to new technological advancements. Furthermore, the rollout of mobile towers is not just an economic issue but also a matter of national pride and sovereignty, as it represents a tangible achievement in the country’s quest for modernization and self-reliance. Hence, integrating satellite options like Starlink would require careful deliberation of both short-term and long-term impacts on the nation’s development trajectory.

Resistance to Change

Finally, there is the inherent resistance to change. Adapting to newer, more affordable internet service provision can be challenging, particularly when it disrupts established systems and practices. This resistance can be a significant barrier, slowing the adoption of innovative technologies like Starlink. Businesses and individuals may hesitate to switch from familiar services to avoid the initial learning curve and potential workflow disruptions. Additionally, there may be concerns about the reliability and performance of new technologies, leading to a preference for sticking with tried-and-tested methods despite potential cost savings or improved features. Overcoming this resistance often requires extensive education, demonstration of benefits, and sometimes even incentives to encourage stakeholders to embrace the new technology.

In conclusion, while the benefits of Starlink’s satellite internet service are undeniable, numerous factors make it unlikely to be granted a license to operate in the Solomon Islands. The combination of regulatory, economic, geopolitical, and technological considerations creates a complex environment where the entry of a global player like Starlink might do more harm than good. Regulatory hurdles include strict telecommunications policies and licensing requirements that Starlink may struggle to meet. Economically, the cost of integrating such a system could outweigh the potential benefits, especially in a region with limited infrastructure and a small market size. Geopolitically, the involvement of a foreign company in the nation’s telecommunications could raise concerns about data sovereignty and security. Technologically, existing local providers may find it challenging to compete with a tech giant backed by SpaceX’s advanced capabilities. The decision will ultimately rest on balancing these factors, ensuring that the nation’s and its people’s best interests are safeguarded. Additionally, a comprehensive evaluation of how Starlink’s services could impact the local economy, social dynamics, and long-term technological development would be required. The authorities must weigh the pros and cons meticulously before deciding.

Finally, learning from the experience of how the Fijian Government agrees to grant Starlink an operational license and how mutually beneficial the relations are will set good precedence and lessons so that other Pacific island countries like the Solomon Islands can leverage it. By observing the positive impacts, such as improved internet access and economic opportunities, other islands might be encouraged to follow suit, recognizing the transformative potential of such partnerships. Furthermore, establishing these connections can pave the way for future innovations and technological advancements, pushing the Pacific region toward a more interconnected and progressive future. And who knows, all the above reasons might be the beginning; Starlink may still be coming to the Solomon Islands, bringing along a wave of positive change.