Starlink wins Mexican government contract

Elon Musk’s interest in Mexico isn’t limited to building a Tesla gigafactory in Nuevo León.

Starlink, the satellite internet service of Musk’s spacecraft manufacturer SpaceX, has been operating in Mexico for some time, and now appears to have a lucrative contract with the federal government to provide connectivity in rural areas of the country, according to Reuters.

Part of Starlink's chain of 1,000 satellites.
Part of Starlink’s chain of 1,000 satellites visible in the night sky. (Archive)

Starlink on Oct. 18 won a tender from the state-owned Federal Electricity Commission (CFE) to provide internet services through December 2026, the news agency said on Monday. Its reporting was based on a draft contract and another CFE document it saw.

The value of the contract is between 887.5 million pesos (US $50.6 million) and 1.77 billion pesos (US $101.3 million), Reuters said.

A bid made by Starlink beat those of two other companies because it “offered the best conditions in terms of price,” the CFE document said.

According to the draft contract, Starlink’s obligation is to provide infrastructure for CFE’s rollout of internet access in rural Mexico. President López Obrador has made the provision of internet connectivity in isolated areas a priority of his administration.

The agreement between Starlink and the CFE began last month and concludes Dec. 31, according to the draft contract which was slated to be formalized on Oct. 20. Reuters said that neither a representative for the internet service nor the CFE immediately responded to its inquiries as to whether the contract had indeed begun.

Starlink has already collaborated with the Mexican company GlobalSat on the delivery of internet services to residents of rural areas. The latter has won two CFE contracts and has been using Starlink antennas since February.

Musk, the world’s richest person, announced in March that Tesla would build a large electric vehicle plant – a gigafactory – in Santa Catarina, a municipality just west of Monterrey that borders Coahuila.

He confirmed last month that the plant would be built, but indicated that he was hesitant to “go full tilt” on the project due to current global economic conditions and uncertainty.

Nuevo León Governor Samuel García said in September that Tesla and its suppliers would invest US $15 billion in the northern state, with about $10 billion of that amount expected to go to the gigafactory.

With reports from Reuters 

5 COMMENTS

Have something to say? Paid Subscribers get all access to make & read comments.
Sheinbaum with Kia Mexico CEO

Kia will invest US $649 million to manufacture electric SUVs in Mexico

0
Kia's announcement is a welcome shot in the arm for Mexico's traditionally strong automotive sector that has been suffering recently from uncertainty not of its own making.
Banga, López et al

The World Bank president is in Mexico with plans to boost the economy

1
In the World Bank's first visit to Mexico in five years, its president is advancing a new Country Partnership Framework that will align with the Sheinbaum administration's Plan Mexico development strategy.
Miss Universe from Mexico, Fátima Bosch, with her crown

MND Local: Miss Universe Mexico and what else is new in Los Cabos during the second half of 2026

0
The Miss Universe Mexico pageant is coming to Los Cabos this summer, along with several other high-profile events and the premiere of a new ultra-luxury resort.
BETA Version - Powered by Perplexity