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Technology
30 March 2025

Starlink Faces Capacity Crisis In Rio De Janeiro

As demand surges, Starlink struggles to meet service needs in Brazil's largest cities.

Starlink, the satellite internet service founded by Elon Musk, has hit a significant roadblock in its operations across Brazil, particularly in the Metropolitan Region of Rio de Janeiro. As demand for high-speed internet continues to soar, the company has exhausted its capacity in several municipalities, leaving many potential customers unable to access its services. Affected cities include Maricá, Duque de Caxias, Petrópolis, and Teresópolis, where users attempting to sign up receive a notification stating that the service is "unavailable." This situation has led to a growing waiting list for new customers, who must now hold on until additional capacity becomes available.

According to the National Telecommunications Agency (Anatel), Rio de Janeiro leads the country in Starlink subscriptions, with approximately 3,400 users as of January 2025. However, this figure represents a slight drop from December 2024, when the service had around 300 more subscribers. The situation is not confined to Rio; other regions, including São Paulo and Manaus, are also facing similar limitations, indicating a broader issue with Starlink's capacity across Brazil.

The crux of the problem lies in the technical limitations of Starlink’s satellite internet system. Each satellite can only support a finite number of users before service quality declines. As demand has surged, many customers have found themselves unable to connect, especially during peak hours when existing subscribers experience significant slowdowns in their internet speeds.

In light of these challenges, Starlink is actively seeking to expand its network. The company has requested authorization from Anatel to launch an additional 7,500 satellites, which would supplement the 4,400 already in orbit. This expansion aims to enhance the service's capacity and better meet the growing demand in urban areas. However, this request is not without its complications.

Anatel is currently weighing the implications of Starlink’s expansion on Brazil’s digital sovereignty and data security. Concerns have been raised about the potential for Starlink to operate without proper integration with national networks, which could lead to Brazilian internet traffic being routed outside of the country's jurisdiction. This situation has sparked a debate about the risks of relying on a foreign-owned company for critical internet services.

As part of its evaluation process, Anatel has included the Starlink expansion request on the agenda for its upcoming board meeting scheduled for April 3, 2025. The decision will determine whether Starlink can proceed with its ambitious plans to more than double its satellite fleet in Brazil. Alexandre Freire, a councilor at Anatel, has highlighted the need for comprehensive information regarding the potential risks associated with the expansion.

In addition to regulatory scrutiny, Starlink's growth has prompted pushback from competitors in the Brazilian satellite internet market. The National Union of Satellite Telecommunications Companies (Sindisat), which represents various telecom firms, has argued that the new generation of satellites proposed by Starlink is significantly different from the previous models, warranting a new licensing process rather than a simple modification of existing rights. They have urged Anatel to reject Starlink's request, arguing that it poses risks to the competitive landscape of the industry.

Starlink, however, continues to advocate for its services as a vital solution for underserved regions, particularly those where traditional internet infrastructure is lacking. The company’s satellites are designed to provide high-speed internet with low latency, making them an attractive option for many users in rural and remote areas.

Despite the challenges, the future of Starlink in Brazil remains a topic of ongoing discussion. The potential for expanded access to high-speed internet is enticing, but the concerns surrounding digital sovereignty and data security cannot be overlooked. As the company navigates these regulatory hurdles, it will need to demonstrate its commitment to addressing these issues while also fulfilling the demand for its services.

As Brazilian consumers await the outcome of Anatel's decision, many are left with questions about the future of internet access in their regions. Will Starlink be able to resolve its capacity issues and expand its services effectively? Or will regulatory challenges and competition from other providers hinder its growth? For now, those interested in Starlink will have to remain patient, hoping for a resolution that brings reliable internet access to more users across Brazil.

The decision from Anatel will not only impact Starlink's operations but also set a precedent for how foreign companies engage with Brazil's telecommunications landscape. As the digital world becomes increasingly vital to daily life, ensuring that access is equitable and secure remains a top priority for regulators and consumers alike.