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Astana, Kazakhstan • 23 August, 2022 | 10:15

Elon Musk’s Internet Might Launch in Kazakhstan in 2023

Satellites of SpaceX, OneWeb and SES pose the issue of higher tax rates

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nytimes.com
nytimes.com

The question of whether Kazakhstan will get a share of the newest satellite Internet technology developed by SpaceX and Starlink founder Elon Musk was on the table now for quite a while. The possibility of it happening seemed to depend on a number of factors, from internal politics to logistical issues, which all but prolong the process from ever reaching a resolution.

But the process does not appear to stop either.

Negotiations

According to LSM.kz, Minister of Digital Development, Innovation and Aerospace Industry Bagdat Musin announced that amendments to the Tax Code of Kazakhstan are necessary before Elon Musk's SpaceX with Starlink satellites, as well as the British OneWeb and the Luxembourgish SES communications companies, start their operations in the country.

Satellites of SpaceX, OneWeb and SES operate at a lower orbit than the traditional ones, so the existing tax rate is too high for this type of service. Therefore, if a new tax rate is adopted by the parliament, from next year onwards foreign communication companies will be able to launch their business in Kazakhstan and build the necessary infrastructure. 

According to Musin, the market of Kazakhstan needs to be demonopolized so that all operators and technologies could function here. OneWeb and SES have already conducted test launches and technical checks in the country, whereas SpaceX does not need tests since they have started their operations in other parts of the world.

Kazakhstan is negotiating with Starlink to deploy satellites in the country.

OneWeb will continue its cooperation with Kazakhstan. Previously, the deployment of non-geostationary satellites of orbital systems (NGOS) of British OneWeb and Starlink from SpaceX was planned until the end of 2022.

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