DES rejects Starlink's full ownership over Thai law
Minister of Digital Economy and Society (DES) Chaichanok Chidchob rejects Starlink's full ownership, citing Thai law violations and digital security risks. Thailand is verifying Starlink's US mandate claim.
- Thailand's Ministry of Digital Economy and Society rejected Starlink's investment proposal because the company demanded the right to establish a 100% foreign-owned entity.
- The Minister cited national security and existing Thai law, which does not permit full foreign ownership in the telecommunications sector, as the primary reasons for the refusal.
- Starlink based its demand on an alleged White House announcement, which Thai officials have been unable to verify and are currently investigating.
- The decision creates a potential conflict between national security and economic benefits, as allowing Starlink's investment may have been linked to a reduction in US import tariffs on Thai goods.
Chaichanok Chidchob, Minister of Digital Economy and Society (DES), revealed that he recently held discussions with Oliver Edelmann, Global Government Affairs Manager at SpaceX, the parent company of the Starlink low-Earth orbit satellite network.
The meeting served as an introduction to the company and a discussion on potential cooperation to support Thailand's space affairs policy.
SpaceX cited an alleged White House announcement, stating that for Starlink to invest in Thailand, it must establish a company that is 100% foreign-owned. If this condition is not met, they would not invest.
Chaichanok immediately responded that he had not seen any such announcement from the White House and countered by asking if partial services or equipment sales could be offered without 100% full ownership.
Edelmann replied that this was not possible; it had to be the full package.
"I then said that if that's the case, we probably won't be able to work together, because the security of the country must be our foremost consideration," Chaichanok recounted.
Chaichanok continued that the atmosphere of the discussion subsequently eased somewhat, but he reaffirmed Thailand's stance that it would not allow foreign entities full ownership in telecommunications businesses directly linked to the nation's digital security system.
SpaceX clarified that Starlink does not intend to compete for the existing internet market share in Thailand but rather wants to help expand internet coverage to remote areas. Chaichanok said that while he understood the intention, in practice, Starlink's high-quality system would inevitably become a market choice that could potentially overwhelm existing operators, which is something Thailand must be cautious about.
"No matter how good Starlink's system is, we have to consider the entire ecosystem. Because ultimately, it won't just fill coverage gaps; it will change the entire market structure," he stressed, noting that SpaceX continued to reference the White House announcement, for which no confirmed information or documentation has been found so far.
The Minister has since consulted with the Prime Minister's Office to verify the facts, as this matter was not included in the trade agreement signed with four ASEAN allies (Indonesia, Malaysia, Thailand, and Vietnam) in Malaysia last month.
Authorities are currently investigating the source of the information cited by SpaceX, as no changes have been detected in the original agreements.
Chaichanok is actively tracking down the source of the alleged announcement. "There shouldn't be any other additional agreements made, and it certainly didn't come from my side. Even if such an announcement were true, any operation must be conducted under Thai law. There's no need to worry because the regulations of the National Broadcasting and Telecommunications Commission (NBTC) do not yet permit foreign entities to fully own businesses of this nature," he confirmed.
A source in the telecommunications sector indicated that one of the key conditions for the US to reduce the import tariff on Thai goods from 36% to 19% was opening the door for Starlink to invest in Thailand.
This allegedly occurred during the administration of former Prime Minister Paetongtarn Shinawatra, with Deputy Prime Minister and Minister of Finance Pichai Chunhavajira overseeing economic affairs at the time.
Subsequently, under the current government led by Prime Minister Anutin Charnvirakul, Thailand signed a trade agreement with four ASEAN allies in Malaysia, where Thailand reportedly committed to relaxing restrictions on foreign ownership for US investments in the telecommunications sector.
Therefore, attention is focused on whether Thailand's refusal to allow Starlink to invest under the company's required terms will impact the import tariff rate on Thai goods to the US.
This is considered a sensitive issue that the government must carefully weigh: the balance between economic benefits and national technological security.
