In a surprising move that has sent shockwaves through the tech and telecom industries, Mexican billionaire Carlos Slim has reportedly severed all ties with Elon Musk’s satellite internet company, Starlink.
The decision marks a significant shift in Latin America’s telecommunications landscape and raises questions about Starlink’s future dominance in the region.
According to reports, Slim’s telecom giant, América Móvil, is set to invest $22 billion over the next three years to bolster its own infrastructure, eliminating the need for Starlink’s satellite services.
The split is reportedly fueled by escalating tensions between the two business magnates, with a recent social media post from Musk implying Slim’s alleged connections to organized crime being a major flashpoint.
The Impact on Starlink
Starlink, a subsidiary of SpaceX, has been expanding aggressively across Latin America, offering internet services to rural and underserved areas. Losing América Móvil as a partner deals a significant financial blow, with some estimates suggesting Musk’s company could forfeit up to $7 billion in potential revenue.
Furthermore, Slim’s decision to redirect his satellite and telecommunications investments to European and Chinese firms marks a broader shift away from U.S.-based technologies.
This move could inspire other regional telecom players to reconsider their reliance on Starlink, potentially weakening its foothold in Latin America.
What’s Next for Starlink?
With América Móvil cutting ties, Starlink must now reevaluate its strategy in Latin America. The company may look to forge new partnerships with regional telecom providers or seek direct-to-consumer sales to maintain its market presence.
At the same time, Musk’s enterprises, including Tesla and SpaceX, could face broader geopolitical challenges if relations with influential business figures like Slim continue to sour.
Given América Móvil’s dominant position in Mexico and beyond, this decision could be the beginning of a wider trend affecting Starlink’s global expansion plans.
As the telecom industry watches closely, one thing is certain—Carlos Slim’s move has shifted the dynamics of satellite internet in Latin America, and Starlink will need to adapt quickly to stay competitive in the region.
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