Starlink approved as 'value-added services' provider
Starlink, the satellite internet service provider owned by Elon Musk, received approval from the National Telecommunications Commission (NTC) [link] for its application to become a “value-added service” (VAS) provider.
The approval allows the company, Starlink PH, to “directly access satellite systems, build and operate broadband facilities to offer internet services”.
Starlink’s legal team said that the NTC approved its application just 30 minutes after the company provided all of the required documentation.
The Department of Trade and Industry said earlier that it hoped Starlink PH would be able to open its first gateway in the country before the end of Duterte’s term next month.
Musk tweeted, “Starlink approved by the Philippines”, then in a later tweet, stated, “Great potential to lift people out of poverty. Providing Internet is teaching people to fish.”
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Locally, news of this approval had investors jumping at the chance to speculate on which satellite broadband suitor Starlink PH might select to team up with to pursue its goals in the Philippines: Transpacific Broadband Group [TBGI 0.34 15.25%] was up 15%, DFNN [DFNN 3.49 12.58%] was up 12%, and Converge [CNVRG 26.50 1.73%] was up 2%.
There are still an ocean of open questions to answer about Starlink PH’s potential business plan before any of this “will they / won’t they” speculation begins to make any sense.
I think it’s still an open question as to whether Starlink PH needs a congressional franchise to operate, and if it does, whether it will team up with a provider that has that franchise already, or whether it will be able to pursue a franchise on its own.
CNVRG has said in the past that it has deals in place with Starlink PH to lease it access to infrastructure needed to operate satellite base stations, and CNVRG’s owner, Dennis Uy, recently made comments that made it seem like Starlink PH was more interested on going forward without the typical Philippine-based partner.
Even after we figure out all this corporate configuration stuff, there’s still the pesky matter of price, product/market fit, and all that which could dramatically impact the real financial benefit to Starlink PH and any of its potential local partners.
Lots of news still to come here.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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