BY EMMANUEL OGBONNA
Bolivia’s new government moved Tuesday to dramatically reshape the country’s telecommunications landscape, issuing a decree that clears the way for global satellite internet providers such as Starlink and Amazon’s Kuiper to operate nationwide. The decision marks a sharp policy reversal aimed at tackling Bolivia’s chronic connectivity problems and modernizing its digital infrastructure.
Centrist President Rodrigo Paz signed the decree, lifting restrictions that had effectively barred international satellite internet companies under the previous socialist administration of former president Luis Arce. The new policy allows foreign operators to apply for licenses to provide broadband services across Bolivia, including in rural and hard-to-reach regions where internet access has long lagged behind the rest of the continent.
The move follows years of frustration over Bolivia’s limited internet speeds and patchy coverage. In 2024, Arce’s government declined to grant an operating license to SpaceX, the company behind Starlink, citing concerns over data protection, regulatory oversight and national sovereignty. Those objections have now been set aside as the Paz administration prioritizes faster connectivity and foreign investment amid mounting economic pressures.
For more than a decade, Bolivia has attempted to expand internet access using a state-owned satellite acquired from China during the presidency of leftist leader Evo Morales. Launched in 2013, the Tupac Katari satellite was billed as a transformative project that would bring connectivity to remote communities and reduce reliance on foreign technology. Morales at the time said the satellite would “enlighten the people” after years of technological isolation.
In practice, however, the satellite failed to deliver the promised improvements. Tupac Katari relies on geostationary technology, orbiting the Earth at roughly 35,000 kilometers above the surface. That distance results in higher latency and slower data transmission, limiting its effectiveness for modern internet use on mobile phones and home broadband connections.
By contrast, the low-Earth orbit satellites deployed by Starlink and similar services operate at altitudes of around 550 kilometers. Their proximity to Earth allows for significantly faster data speeds and lower latency, making them better suited for video conferencing, cloud-based services and other data-intensive applications that are increasingly essential for businesses and public institutions.
The need for improvement is stark. A report published in November by connectivity intelligence firm Ookla ranked Bolivia last in South America for both mobile internet and fixed broadband speeds. While neighboring countries have expanded fiber-optic networks and adopted newer technologies, Bolivia has struggled to keep pace. Brazil currently leads the region in internet performance, according to the same report.
Speaking after signing the decree, Paz said opening the market to international satellite providers is a key step toward narrowing the country’s digital divide. He said the government’s goal is to ensure reliable, high-quality internet access for households, schools and businesses across Bolivia’s diverse and often rugged geography.
Slow connectivity has long hampered daily life and economic activity in the country. Simple tasks such as virtual meetings are frequently disrupted, while more advanced digital operations, including cloud computing and online services, remain difficult or impractical in many areas.
“We became spectators while the rest of the world moved forward,” Paz said, referring to Bolivia’s technological stagnation in recent years. “That chapter is ending. With new technologies, we will be able to recover lost time and reconnect Bolivia with global innovation.”
The president also said the improved regulatory environment is already drawing interest from major international firms. He indicated that companies including Tesla, Amazon, Tether and Oracle are planning investments tied to new data centers expected to be built near the cities of El Alto and Cochabamba. Such projects, he said, would strengthen Bolivia’s digital backbone while creating jobs and attracting additional capital.
Paz has made foreign investment a central pillar of his strategy to stabilize the economy, which has been strained by persistent shortages of U.S. dollars and mounting fiscal pressures. Earlier this week, he signed a separate decree eliminating long-standing fuel subsidies that had weighed heavily on public finances and worsened the currency shortage.
That decision sparked protests on Monday, with labor unions and other groups taking to the streets across the Andean nation to oppose the subsidy cuts. Despite the unrest, Paz has defended the measures as necessary to restore economic balance and lay the groundwork for sustainable growth.
By opening Bolivia to global satellite internet providers, the government is betting that faster connectivity and increased technological investment can help modernize the economy, expand opportunities in remote regions and pull the country out of years of digital isolation.
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