Starlink, a subsidiary of American company SpaceX, officially launched its low Earth orbit (LEO) satellite-based Internet service in Timor-Leste, a country that historically suffered from poor Internet connection. This launch reflects Starlink’s larger investment trend in Southeast Asia.
On an average day, Americans spend seven hours and five minutes connected to the Internet according to 2022 research by DataReportal. Whether it is scrolling through social media, responding to work emails, video calling friends, or shopping online, the Internet has become a fundamental part of our lives. However, that is not the case in Timor-Leste, where unreliable Internet access is common.
In 2024, Timor-Leste was ranked as having the 19th slowest Internet service out of 229 countries and territories tested by Cable, a UK broadband provider. According to a 2024 DataReportal report, the median fixed internet connection speed was 6.10 megabits per second. Meanwhile, the US had a median fixed internet connection speed of 219.71 megabits per second during the same period.
Moreover, only about 54.2% of Timor Leste’s population has access to the Internet. Given the Internet’s slow rates and sparseness, it is not surprising that businesses and individuals report frequent loss of service and rely on strategies like swapping SIM cards to maintain service. However, this situation may soon improve because of one American company: Starlink.
Timor-Leste Welcomes Starlink
To improve Internet access, the government of Timor-Leste granted registration certificates to three new telecommunications companies on August 22, 2024. As a result, Starlink, Gonsoa, and Nerravi Networks joined the market that previously consisted of just Timor Telecom, Telkomcel, and Telemor. Yet, it was not until December 5, 2024, that Timor Leste’s National Communications Authority gave Starlink a license to provide Internet.
With this new license, Starlink launched its high-speed Internet service in Timor-Leste. As of December 13, 2024, this new Internet service is available across the entire country, creating great optimism about the economic and technological future of Timor-Leste. “The technology used by Starlink will bring high-speed Internet to remote regions of the country, where [Internet] coverage via fiber optic cables will still require more time to implement,” said Ágio Pereira, Minister of the Presidency of the Council of Ministers, in a press release. Timor-Leste has officially become the 116th country to have Starlink Internet.
Starlink: Harnessing the Power of Satellites
Starlink provides high-speed Internet by utilizing a network of low Earth orbiting (LEO) satellites that transmit signals to various ground stations. Currently, the company has 6,376 LEO satellites orbiting about 340 miles above Earth. This number of satellites is impressive considering there are currently about 13,230 satellites in space. Unlike traditional Internet services, which rely on a few large satellites in high orbit, Starlink’s satellites are much closer to the Earth, reducing the lag time between satellites and ground stations. This results in faster Internet speeds for Starlink users.
Challenges to Internet Access
Starlink may face some challenges as they compete in the Timor-Leste telecommunications market. First, the service costs may be too high for Timorese consumers, especially those living in poorer or more remote areas. As of December 13, 2024, the standard hardware costs $390 and residential service costs $50 per month in Timor-Leste. This price may be unappealing since 42% of Timorese citizens live below the country’s poverty line.
Second, Starlink will soon face competition from Australia. In 2022, Timor-Leste and Australia signed an agreement to create a submarine fiber optic cable system that would provide high-speed Internet direct from Darwin and Port Hedland, Australia. The Timor-Leste government predicts that the project will be complete by April 2025 and that internet costs could drop by as much as half. While Starlink has the advantage of a head start, this new competition may diminish future sales.
A New Frontier for Timor-Leste
Yet, there is still great hope that increased Internet access can bring economic prosperity to Timor-Leste. “A modern and inclusive telecommunications network is fundamental to building the foundations of a strong economy, providing better public services, and creating jobs and opportunities for our people,” said Minister Xanana Gusmão at the ceremony granting registration certificates to the three previously mentioned telecommunication companies.
While Timor-Leste currently has limited e-commerce capabilities, there is significant potential for the future. Not only is Timor-Leste the youngest country after it gained full independence in 2002, but citizens under 35 years old account for 74% of the population. Young people are already using existing Internet access to promote their businesses or receive education, so Starlink may speed up this process.
With regard to high costs, Starlink has some flexibility. Unlike traditional Internet providers, Starlink has no contracts, so prices can be changed on a monthly basis. While there are no announcements of price changes yet, discounts have been offered in Africa, Latin America, and Oceania. If Starlink adjusts the price, this could increase accessibility.
Southeast Asia as a Starlink Hub
Aside from Timor-Leste, Starlink serves the Philippines, Malaysia, and most recently Indonesia. The Indonesian e-commerce market is very promising since Indonesia is the fourth most populous country and 76% of the country uses the Internet. However, 90% of Indonesians rely on smartphone data for their Internet, so Starlink could help provide a fixed Internet connection, especially for those living in rural or remote areas. Starlink is already being tested in health clinics to collect and manage real-time health data in Indonesia.
Recently, SpaceX, the parent company of Starlink, has begun purchasing satellite components from factories in Vietnam. SpaceX has also requested another Taiwanese supplier of satellite parts to relocate production to Thailand. As a result, Southeast Asia is slowly becoming a vital production and consumption hub for Starlink and SpaceX. Hopefully, over the years, these partnerships can help increase access to the Internet and decrease consumer costs in the region.
Daniel Salgado-Alvarez is a Fall 2024 Young Professional at the East-West Center. He is a recent graduate from Harvard University, where he studied sociology and East Asian studies.