Kathmandu- American officials have expressed concern that growing Chinese influence is delaying the entry of Starlink into Nepal. According to discussions held during recent diplomatic and business meetings, U.S. representatives believe policy and political obstacles are preventing the satellite internet provider from entering the Nepali market.

While neighboring countries such as India and Bhutan have already opened the door for Starlink services, Nepal remains an exception. This has prompted Starlink representatives to continue lobbying through diplomatic and informal channels.

American diplomats have reportedly raised concerns with Nepali officials about the prolonged delay, especially after Starlink secured approvals in India and Bhutan. U.S. officials say American companies remain interested in investing and expanding in Nepal, particularly in the technology sector, but are discouraged by policy barriers and regulatory uncertainty.

'Their interest is in networks, connectivity, and technology,' said one official familiar with recent meetings between American representatives, government ministers, and private-sector business leaders in Kathmandu.

U.S. diplomats have repeatedly raised the issue of Starlink’s entry with government officials. During the previous government, efforts were made to move the approval process forward, but the initiative stalled.

Former Minister for Communications and Information Technology Jagdish Kharel reportedly intervened directly, describing Starlink as a technology with potential military applications. He is said to have persuaded then Prime Minister Karki to halt the process on national security grounds.

After Balen Shah formed a new government, Starlink renewed its efforts to enter Nepal. However, according to officials at the Ministry of Communications and Information Technology, the government has not yet received a formal business proposal.

'Although there is continued diplomatic interest, nothing concrete has happened at the business level,' one ministry official said. 'No decision can move forward until the government formally addresses the issue.'

Recently, Starlink representatives sent letters to both the Telecommunications Authority and the Ministry of Communications and Information Technology seeking meetings and further discussions. However, officials from both institutions reportedly did not respond. Even when Starlink representatives visited Kathmandu for follow-up meetings, Nepali authorities remained unresponsive.

Owned by Elon Musk, Starlink has been trying to enter Nepal for the past one and a half years. While most South Asian countries have moved closer to allowing the service, Nepal has yet to establish a clear pathway for approval. As a result, Starlink representatives have continued informal lobbying efforts rather than pursuing a formal application process.

A major obstacle is Nepal’s telecommunications policy, which requires foreign telecom companies to maintain at least 20 percent local ownership. Starlink, however, wants to operate in Nepal with 100 percent foreign ownership. The company argues that it does not follow local shareholding structures in other countries and is lobbying for Nepal to make a special policy exception.

Following renewed American interest in the issue, discussions have reportedly resumed within the government. Officials have briefed ministers that Nepal’s laws do not explicitly prohibit Starlink, although existing policy provisions create barriers. The government has already announced plans to ease restrictions on foreign investment in sectors such as information technology and aviation.

Finance Minister Dr. Swarnim Wagle has publicly indicated support for facilitating foreign investment reforms. Some officials suggest that policy changes related to satellite internet and foreign investment could be announced in the upcoming national budget.

Nepal now faces additional pressure as Starlink prepares to expand across South Asia, including India. Officials warn that if Nepal continues to delay approval, there is a growing risk that the service could begin operating informally or illegally within the country.

Satellite communication services are rapidly becoming mainstream technologies. However, regulators and traditional telecom operators in Nepal fear that unrestricted satellite internet services could undermine existing investments and reduce government revenue generated from conventional telecommunications providers.

Security concerns have also become central to the debate. Officials worry that if communication infrastructure becomes heavily dependent on multinational corporations, Nepal currently lacks the regulatory capacity and technical systems needed to manage potential data security and surveillance risks.

According to officials familiar with the matter, the Chinese side has actively opposed Starlink’s entry from the beginning. Sources say Chinese representatives have intensified efforts to prevent the expansion of American satellite technology in Nepal, at least until China develops and deploys comparable satellite communication services of its own.

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