Starlink has received approval from the Bhutan Information, Communication and Media Authority (BICMA) to launch its high-speed satellite-based internet services in Bhutan.

BICMA officials revealed that they carefully examined several factors before granting Starlink its licence. The approval was contingent upon Starlink registering as a foreign direct investment (FDI) company, appointing local representatives to comply with regulatory requirements, and ensuring that service quality and data privacy would be protected.

The licence granted to Starlink strictly covers internet services through user terminals and does not extend to satellite-to-mobile cellular services.

A major issue raised by Bhutanese consumers has been the need to make payments in local currency rather than in USD. BICMA has directed Starlink Services Private Limited to enable payments in Ngultrum. The company is currently working on integrating local payment systems, and until the process is complete, Starlink’s services will remain inactive in Bhutan. No timeline has been provided for the commercial launch.

Once the payment system is operational, Starlink will introduce an official registration portal for users.

TashiCell, one of the two primary internet service providers in Bhutan, has acknowledged the competitive pressures posed by Starlink’s entry, particularly concerning pricing and service quality. The company has already been facing challenges due to government mandates to lower mobile data and leased line rates.

To remain competitive, TashiCell is working on expanding its 4G and 5G networks to enhance coverage and capacity, which it hopes will help reduce prices while ensuring quality. However, TashiCell's officials noted that balancing these factors remains a challenge in Bhutan’s evolving telecommunications market.

In addition to expanding its mobile network, TashiCell is also increasing its fibre-to-the-home (FTTH) infrastructure in urban areas. One of the significant obstacles faced in this expansion is obtaining government approvals for underground trenching to lay fibre cables. Should these delays continue, the company may resort to installing overhead fibre lines to improve connectivity.

TashiCell believes that expanding FTTH infrastructure will allow the company to offer high-speed internet at lower prices, benefiting Bhutanese consumers.

Addressing assumptions that Starlink will primarily serve remote areas, TashiCell pointed out that most populated regions in Bhutan are already covered by mobile networks through the government’s Rural Communication Programme. The company argued that Starlink would compete in both urban and rural markets, with the government’s main objective being to reduce internet costs rather than expand coverage.

TashiCell also expressed concerns about national data sovereignty, cautioning that foreign-owned satellite networks operate outside Bhutan’s regulatory reach. The company referenced instances where geopolitical tensions had caused satellite services to be withdrawn in other countries, highlighting the risks associated with dependency on foreign providers.

TashiCell further warned that intense price competition could harm Bhutan’s telecom sector, potentially driving local providers out of business and limiting the government’s ability to regulate pricing and service stability.

Despite these concerns, TashiCell sees potential areas for collaboration with Starlink. The company suggested that Starlink could be used to backhaul mobile base stations, providing more reliable connectivity in the event of international fibre outages. TashiCell also identified the possibility of direct-to-device communication, where mobile devices connect via satellite in areas lacking terrestrial network coverage, as a potential avenue for partnership.