The close relationship between President Javier Milei and tech billionaire Elon Musk continues to solidify following official confirmation that the Argentine government will award Starlink the contract to provide internet connectivity to 6,000 rural schools across the country for at least three years.

The agreement between the National Communications Agency (in Spanish, ENACOM) and Starlink, which includes a joint investment of approximately US$22 million, was announced in late July.

Starlink will provide 6,000 satellite connectivity kits, which include two years of priority service, at an estimated cost of US$10 million.

The government will contribute the remaining US$12 million to fund installation, technical support, network monitoring, and the third year of service.

Once the third year is over, the provinces and municipalities that have joined the initiative will be responsible for covering the cost of Starlink’s corporate service.

The agreement, however, quickly drew scrutiny.

Critics have pointed to the absence of a public bidding process and the lack of public information regarding Starlink’s proposal. Beyond stating that the education ministry will inform what schools will be included in the program, the government has offered no information.

The exclusion of other companies that could have participated in a potential bidding process is another point under the spotlight. This includes the state-owned company ARSAT, which has been defunded by the current government and possesses a satellite capable of providing the services that Milei requested from Elon Musk’s company.

Since there was no government bidding process and no public offer from Starlink, the actual cost of the project is not known with certainty.

Telecommunications market analyst Enrique Carrier noted in a recent report that the costs for the first three years “are not so linear,” as there is a “discount” in the first two years that is recouped in the third.

According to his estimates, the cost during the first two years would be US$30 per month, rising in the third month to US$166.

This would mean that the average over the three years would amount to a monthly cost per school of US$74. 

According to Carrier, this could serve as a “benchmark” for........

© Buenos Aires Herald