Elon Musk Surprised as Bolivia Turns Down Starlink—A Cautious Step in a High-Stakes Tech Dilemma

In a decision that surprised many across the global tech landscape, Bolivia has declined to allow Starlink, Elon Musk’s satellite internet service, to operate within its borders. Despite the country’s well-known struggles with internet access—especially in rural and mountainous regions—the Bolivian government made the rare choice to say “no” to a company that has transformed digital access in some of the world’s most remote places.

Starlink, operated by Musk’s private aerospace firm SpaceX, has already provided internet to more than five million users across 125 countries. It has been praised for bringing connectivity to hard-to-reach areas, from the rainforests of Brazil to rural schools in Africa. In South America, it has rapidly expanded in countries like Chile and Brazil, where hundreds of thousands now rely on Starlink for communication, education, and even emergency services.

But Bolivia remains a holdout.

While many expected the Bolivian government to welcome Starlink with open arms—given the country’s aging internet infrastructure—the government instead refused to issue an operating license. The decision has stirred debate among citizens, policymakers, and international observers alike.

A Complex Web of Needs and Caution

Internet access in Bolivia, particularly outside of major cities like La Paz, is slow and unreliable. In remote communities, accessing a signal often involves climbing hills or trees, and uploading basic content—like school lessons—can require a multi-hour drive to areas with better service.

Despite these challenges, Bolivia’s government has opted to rely on its own satellite, launched in 2013 with the help of China. Iván Zambrana, director of the Bolivian Space Agency, argues that the satellite—though aging—provides sufficient national coverage and that regulators are cautious about allowing any company, especially a powerful foreign one, to dominate their telecom sector.

“Any company that comes to do business in the country is going to get a piece of the pie—a pie that right now belongs to those of us here,” Zambrana said. He added that Starlink must be subject to rules that ensure it benefits the Bolivian economy without undermining local providers.

Concerns Beyond Connectivity

The Bolivian government’s refusal goes beyond technical capabilities. Officials and experts have raised questions about the influence that Musk—who also owns X (formerly Twitter)—may hold if granted control of part of the nation’s internet infrastructure. Musk has made headlines for promoting political views via X and for his hands-on involvement in Starlink’s operations, including statements implying that “there is no substitute for Starlink.”

Antoine Grenier, head of space research at UK-based firm Analysys Mason, noted, “Countries have realized that they cannot just rely on one party.”

Bolivia is not alone in its hesitation. Other nations, including Brazil, have begun exploring alternatives after expressing concern over Starlink’s dominance. Brazil, Starlink’s largest market in Latin America, has entered early agreements with SpaceSail, a Chinese firm building a competing satellite network. The goal: prevent dependency on a single private company for critical national infrastructure.

The People Want Access

While regulators remain cautious, many Bolivians are eager for the kinds of improvements Starlink could offer. In rural towns like Quetena Chico, where schoolteacher Adrián Valencia must drive six hours to upload digital class materials, poor internet access directly impacts education and opportunity.

“It’s like not being able to read,” Valencia said. “The internet is essential.”

In some cases, individuals and businesses have resorted to bringing Starlink hardware across the border illegally from Chile. Though temporary connections can be established in this way, they are typically cut off after a few months due to regional restrictions.

Meanwhile, researchers such as Patricia Llanos, who regularly leads field expeditions in Bolivia’s Amazon basin, describe the difficulties of coordinating work without reliable internet. In one recent instance, a training session for 80 participants had to rely on walkie-talkies because a Starlink router couldn’t be secured in time.

“Even though we have a satellite in space,” Llanos said, “we still don’t have a way to connect.”

The Future of Internet in Bolivia

Bolivia’s Chinese-built satellite may only remain operational until 2028, at which point the country will need a replacement. Early conversations with China’s SpaceSail are underway, according to Hugo Siles, Bolivia’s ambassador to China. He emphasized that cooperation with China is viewed as more respectful of Bolivia’s legal framework and national sovereignty.

SpaceSail, which is backed by the municipal government of Shanghai, plans to launch more than 600 low-orbit satellites this year and potentially 15,000 by 2030. Some experts believe this network could be the first real global challenger to Starlink’s dominance.

“If anyone is going to be able to compete with Starlink in the near future, it will be them,” said Gregory Falco, an assistant professor at Cornell University.

Still, Starlink appears confident that Bolivia may reconsider. On its global coverage map, Bolivia is marked as a location where service is expected by 2025.

A Turning Point?

The Bolivian government’s firm stance—though controversial—has sparked a broader global conversation about who should control access to the internet. Should countries rely on global tech giants to connect their people, or should they build slower but sovereign systems?

For now, Bolivians continue to struggle with slow-loading pages, dropped calls, and limited digital access. And while policymakers weigh long-term risks and international alliances, the immediate needs of students, teachers, researchers, and rural families remain unmet.

The situation in Bolivia offers a snapshot of a global dilemma: the tension between progress and control, between rapid development and long-term sovereignty. In rejecting Starlink, Bolivia has made a bold statement—not necessarily against technology, but in favor of national autonomy.

Whether that stance will hold in the face of mounting public pressure remains to be seen.