Elon Musk’s Starlink Malaysia must meet license requirements

According to the Minister of Communications and Digital, Fahmi Fadzil, Starlink Malaysia, which is associated with Elon Musk, must adhere to the legal licensing requirements even if permitted to operate in the nation as a 100% foreign-owned corporation.

As reported by The Star, any exception to equity ownership must be supported by a compelling case. Then the Ministry and the Malaysian Communications and Multimedia Commission (MCMC) will consider it.

“As a licensee under the Communications and Multimedia Act 1998 (Act 588), Starlink Malaysia is still subject to and must comply with the licence conditions.

“(These include) the requirement to ensure the security of information, network reliability. As well as its integrity by adhering to security standards, codes, directives, and the guidelines issued under relevant laws.” He said in a parliamentary written reply to Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam).

Dr Wee had requested an explanation from the ministry. For why Starlink Malaysia was granted a 10-year operating license and the foreign equity ownership threshold was loosened.

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In addition, he was interested in the projected cost of using the Starlink project. And how it would affect the nation’s cybersecurity strategy.

Fahmi added that three other businesses with 100% foreign ownership—NTT MSC Sdn Bhd, AT&T Worldwide Network Services (Malaysia) Sdn. Bhd and BT Systems (Malaysia) Sdn Bhd received the same treatment.

“These three companies also operate globally in several countries and still hold licences under Act 588 to date.

“Therefore, the approach of allowing 100% foreign equity ownership is not a new one and has been implemented since as early as 2010,” added Fahmi.

Before issuing Starlink Malaysia a licence, he said, several criteria were taken into account. Including solving the gap in internet coverage, particularly in rural regions.

“To ensure that the services provided by Starlink Malaysia do not compromise the country’s economic sovereignty and support the inclusivity concept for all Malaysians in promoting the digital economy, engagement sessions have been conducted with the Defence Ministry, National Cyber Security Agency, Malaysian Space Agency, Home Ministry, Investment, Trade and Industry Ministry, and the Malaysian Investment Development Authority,” said Fahmi.

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A proof of concept (POC) for installing Starlink satellite equipment in 40 carefully chosen places across the country. It will be carried out by the government through MCMC.

“This aims to assess the feasibility of providing Starlink broadband services as an initial solution to address connectivity issues in areas… including schools, universities and remote locations,” Fahmi stated.

He stated that for the POC in several initial locations. MCMC has acquired 10 units of High-Performance (HP) Starlink kit devices. They come with a priority subscription package for a year from Starlink Malaysia.

“The Starlink HP device package with a priority subscription allows users to achieve a maximum download speed of up to 350Mbps and upload speed of up to 40Mbps.

“The acquisition cost for this Starlink satellite service is valued at RM190,841,” he stated.