China's SpaceSail to Challenge Elon Musk's Starlink in Brazil
China's SpaceSail intends to begin operations in Brazil by 2026. SpaceSail collaborates with a Brazilian telecom company to provide internet access in underserved communities. The company aims to use cutting-edge technology to support Brazil's national initiatives.
Jason Jie Zheng, CEO of SpaceSail, revealed the company's plans in an exclusive interview with Bloomberg News. SpaceSail has signed a memorandum of understanding with Brazilian telecommunications conglomerate Telecomunicacoes Brasileiras S.A. to investigate providing internet services in areas where traditional fibre optic infrastructure is lacking.
The agreement was formalised during Chinese President Xi Jinping's visit to Brazil, which coincided with the G20 summit in Rio de Janeiro. President Xi is expected to sign a series of agreements with Brazilian President Luiz Inacio Lula da Silva in Brasilia, as Brazil seeks Chinese assistance in economic development. This move, however, may raise tensions with incoming US President Donald Trump, who has taken a hard line against China's growing influence in the Americas.
SpaceSail's entry into the Brazilian market is part of a larger trend of Chinese investment in the country. Chinese businesses are making significant inroads into the Brazilian market through initiatives such as BYD's electric vehicle operations and partnerships with companies such as Oppo. Jie Zheng confirmed that SpaceSail intends to launch internet services in Brazil within two years and establish a subsidiary there by the end of this year.
Jie Zheng, speaking after the signing ceremony, emphasised the collaborative nature of the partnership with Telebras, saying, "Our MOU with Telebras is not only a partnership but also a shared commitment to empowering underserved regions of Brazil." He emphasised the importance of using SpaceSail's advanced technology to support Brazil's national initiatives, particularly in education, public health, and government services.
SpaceSail launched its first 18 satellites into orbit in August, followed by another 18 last month. The company intends to launch over 600 satellites to complete the first phase of its satellite constellation by the end of the following year. This strategic move follows a visit by Brazilian government officials to SpaceSail's headquarters in October, which stemmed from a legal dispute between Elon Musk's Starlink and Brazilian authorities.
Starlink, currently the dominant player in Brazil's satellite internet market with a 46% share, encountered regulatory challenges in the country, resulting in frozen bank accounts and temporary restrictions. Despite these issues, as of September, Starlink had 265,000 customers in Brazil, accounting for just 0.5% of the total broadband market. Brazilian Communications Minister Juscelino Filho denied that there was any link between the regulatory actions against Starlink and Brazil's engagement with Chinese competitors, emphasising the importance of promoting competition and market choice.
China's SpaceSail plans to launch operations in Brazil by 2026.
SpaceSail partners with Brazilian telecom company to provide internet services in underserved areas.
The company aims to support Brazil's national initiatives with cutting-edge technology.
Source: MSN