The Authority of the Freeport Area of Bataan (AFAB) said that officials of SpaceX and Starlink held talks with them together with the provincial leaders, pointing to the possibility of the Elon Musk-owned companies establishing a base operation in the Freeport for its Philippine project.
“The FAB has confirmed had a productive series of meetings with SpaceX and Starlink officials over the past few months,” said AFAB Administrator Emmanuel D. Pineda. Musk is the world’s wealthiest in the Forbes’ List with a net worth of $219 billion.
In attendance in those meetings, Pineda were provincial leaders of Bataan with the assistance of the FAB enterprise, iWave Advanced Research Group where the possibility of Starlink initially launching its service in the province of Bataan by establishing a base of operations in the FAB.
The passage of the amendments of the Public Service Act would help facilitate SpaceX and Starlink’s entry in PH.
“With the recent enactment of Republic Act No. 11659 or An Act Amending Commonwealth Act No. 146 otherwise known as the Public Service Act liberalizing foreign ownership of telecom services, SpaceX and Starlink have now been given the option to move forward with the regulatory process, incorporate and draw up an operational plan,” he said.
Given the complex matters, Pineda said that SpaceX officials are keen on completing the process within the year.
“The AFAB is confident that more details and updates are soon forthcoming,” said Pineda.
In March this year, Trade and Industry Secretary Ramon M. Lopez said that Musk’s proposed project in the country is expected to be finalized in the remaining three months or before President Duterte steps down from office, making the Philippines the first country in Southeast Asia to host the fast broadband facility via satellite.
Lopez made the announcement after meeting with Spacex senior executives Rebecca Hunter and Ryan Goodnight, National Telecommunications Commission Deputy Commissioner Edgardo Cabarios and DFNN Executive Chairman Ramon Garcia Jr.
According to Lopez, the Board of Investments (BOI) was assisting SpaceX application while locations of their gateways, which will be in major and suburbs areas, are also being visited to ensure the project will materialize within the last three months of the Duterte administration. Lopez said the company is still finalizing the investment figures.
Lopez said that BOI is assisting the company's registration under the Strategic Investment Priorities Plan (SIPP) and in the processing of permits for their business to ensure ease doing business, Lopez said. Projects under SIPP are entitled to a package of juicy tax and fiscal incentives.
The planned establishment of SpaceX, which will provide internet services in the Philippines using its Low Earth Orbit (LEO) satellite network constellation called Starlink. The constellation consists of over 1,600 satellites in mid-2021, and will eventually comprise of thousands more of mass-produced small satellites in LEO, which communicate with designated ground transceivers.
The launch of Spacex/Starlink in the country will enable a much faster broadband speed, better connectivity, more capacity for telecommunications services and more affordable rates for consumers. “Their system will augment as well as complement existing broadband capacities. This will further capacitate micro, small, and medium enterprises (MSMEs), facilitate online learning, e-commerce and fintech," said Lopez.
The project followed after a series of meetings with the Musk company that started during a US Investment Mission in November 2021 yet. He said the DTI-BOI and SpaceX intently discussed the project’s entry timeline and the Duterte Administration’s priority legislative reforms.
Likewise, Lopez said that the passage of the amended Philippine Service Act (PSA), which allows full foreign ownership in public services, was also instrumental in the company's decision to invest in the Philippines. According to Lopez, a series of online meetings with the company immediately followed after the Senate ratification of the PSA in December last year. They also held an update session in February 2022, and another in early March this year to discuss further SpaceX's business plans in the Philippines.
During the recent meeting, Lopez said that SpaceX was bullish on the growing consumer base and much-improved investment climate in the country with the current major economic reforms. "They noted that the signing of the amended PSA, which allows up to 100 percent foreign ownership of public services in the country, was a critical factor in the company’s decision to invest, as all its technologies are proprietary," said Lopez.
SpaceX is a relatively young but fast-growing technology and aerospace company owned by the highly celebrated entrepreneur Elon Musk. The company is currently establishing a local Filipino entity that will be their wholly-owned subsidiary and is targeting to deploy three gateways in the first phase of their launch.
He said the Philippines is set to be the first in Southeast Asia to avail of such technology that will bring high-speed satellite broadband connectivity to customers, particularly to areas where connectivity has been difficult or impossible.