(Phnom Penh): As Cambodia looks to advance its digital economy, fintech, and broader technological development, aligning these efforts with the government's pentagonal strategy becomes crucial for sustainable progress. The pentagonal strategy, which focuses on promoting human capital development, economic diversification, infrastructure enhancement, institutional reform, and environmental sustainability, can be a key framework for the country as it accelerates its digital transformation. Starlink, which uses a constellation of low Earth orbit (LEO) satellites to provide high-speed internet, promises to revolutionize Cambodia’s digital landscape. However, its entry into the market brings both opportunities and challenges that require careful consideration.
I. Impact on Cambodia’s Digital Landscape, Especially in Rural Areas
One of the most compelling advantages of Starlink’s high-speed satellite internet is its potential to bridge the digital divide, particularly in rural and remote areas of Cambodia. With much of the rural population still relying on slow and unreliable internet connections, Starlink offers a lifeline, providing affordable, high-speed access to those who previously had limited options.
− Human capital development:
The digital economy and fintech require a skilled workforce capable of leveraging technology for innovation and growth. Cambodia must focus on developing digital literacy and technical skills across its population. This includes strengthening education in STEM (science, technology, engineering, and mathematics) and encouraging the growth of digital entrepreneurship. Starlink's entry can support this by providing faster internet access to rural and underserved regions, allowing more people to engage in online learning and digital skill-building. Moreover, the government should invest in vocational training and programs to upskill workers for the growing demand in sectors such as fintech, artificial intelligence (AI), and software development. This will contribute to building a robust talent pool that can sustain Cambodia's digital economy.
− Economic diversification and technological innovation:
To foster a strong, future-proof economy, Cambodia must diversify its economic base, moving beyond traditional sectors like agriculture and garment manufacturing. Embracing digital technologies and fintech solutions will allow Cambodia to enter high-growth sectors such as e-commerce, digital finance, and cloud computing. Starlink can be pivotal in facilitating this diversification by connecting previously isolated regions to global markets. Rural businesses and startups will be able to access e-commerce platforms, expanding their reach and increasing their competitiveness. Similarly, fintech companies can thrive in a connected Cambodia by offering innovative digital payment systems, microfinance, and peer-to-peer lending services to the population, particularly in areas where traditional banking services are limited. Furthermore, supporting local startups in the tech and fintech space through targeted policies and incentives can spur innovation and contribute to the broader diversification of the economy
− Infrastructure enhancement
One of the significant challenges to Cambodia's digital economy is the underdeveloped traditional infrastructure, especially in remote areas. While the government has made strides in improving internet connectivity, Starlink’s satellite internet presents a viable solution to bridge the digital divide. The availability of high-speed internet, irrespective of geographic location, could bring about a significant improvement in communication, business operations, and access to information across the country. Access to fast internet could boost educational outcomes, improve access to healthcare through telemedicine, and foster e-commerce opportunities, helping integrate rural populations into the broader national economy. Furthermore, Starlink’s low-latency capabilities are expected to significantly enhance digital services such as cloud-based solutions and video conferencing, driving productivity and innovation in underserved regions. However, the cost of Starlink’s services might remain a barrier for some Cambodians, especially in low-income areas. For Starlink to make a meaningful impact, pricing strategies will need to be carefully aligned with Cambodia’s economic realities.
− Starlink’s role in tariff negotiations
Starlink’s arrival could play a significant role in Cambodia’s tariff discussions, especially if the government aims to tax or impose tariffs on foreign internet providers. The introduction of a major international company like Starlink may spark debates on fair competition, attracting foreign investment, and boosting government revenue. Cambodia will need to carefully weigh the economic advantages of Starlink’s services against the risk of losing revenue by regulating satellite internet providers less strictly than traditional operators. Additionally, the government could leverage Starlink’s presence to negotiate better terms for future foreign investments in the digital sector, especially from the US companies and investors.
− Combating cyber scams and human trafficking
Cambodia may be vulnerable to the misuse of satellite internet services like Starlink for fraudulent schemes, which are often linked to human trafficking and forced labor. These illicit activities thrive due to weak regulatory oversight and limited law enforcement capacity. Technology providers such as Starlink bear a responsibility to ensure their services are not exploited for such purposes. Addressing this issue requires greater corporate accountability and closer cooperation with regional governments. In Cambodia's context, this would involve strengthening regulatory frameworks and enhancing enforcement mechanisms to disrupt the operations of scam networks. A joint initiative between the Cambodian government, Starlink, and other Southeast Asian nations could help curb the spread of cyber scams and safeguard at-risk communities
II. Regulatory hurdles and addressing implementation challenges
Starlink faces regulatory hurdles in Cambodia, where satellite communication policies are still developing. It must secure licenses from the heavily regulated Ministry of Post and Telecommunications and align with national frameworks for both satellite and terrestrial networks. Concerns over data sovereignty and national security could arise, as Starlink’s traffic routes through global networks. To enable Starlink’s growth while protecting national interests, Cambodia should create clear satellite internet policies through a collaborative approach between the government and industry stakeholders. Secondly, Starlink’s decentralized and independent system may challenge government control over information flows, raising concerns about national security, censorship, and surveillance capabilities, which make it harder the government to monitor online content, prevent illegal activities, or protect critical national information infrastructure. Thirdly, Starlink's service is relatively expensive (initial setup cost around $600–$700, monthly fees~$90–$120). Rural users, the ones most in need of internet access may find it unaffordable. This could widen the digital divide between urban and rural populations. Last but not least, Cambodia’s major providers (like Cellcard, Smart Axiata, Metfone) have invested heavily in 4G/5G and fiber infrastructure. Starlink's entry could disrupt the domestic market, threatening local businesses if not properly integrated, could further undermining local telecoms could harm jobs, investment, and domestic technological development
III. What should the Cambodian Government do?
To successfully manage Starlink’s entry into Cambodia, the government should first update and clarify the regulatory framework. This involves drafting new regulations specifically for Low Earth Orbit (LEO) satellite providers, requiring licensing, compliance with Cambodian laws, such as the Cybersecurity Law and E-commerce Law and ensuring a local office presence. Such measures would maintain government oversight without stifling innovation. In parallel, Cambodia should negotiate strategic agreements with Starlink through Memorandums of Understanding (MoUs). These agreements should ensure Starlink operates under Cambodian law, with clear stipulations regarding cybersecurity standards, lawful interception capabilities, emergency service provisions, and tax obligations. This would protect Cambodia’s sovereignty while allowing the benefits of Starlink’s services to flow to the public.
Promoting public-private partnerships (PPP) is another crucial step. The government should encourage collaborations between Starlink and local telecom providers to deliver hybrid services, such as using Starlink for backhaul connectivity while domestic providers manage last-mile delivery. This approach would minimize market disruption and strengthen local businesses. To maximize Starlink’s benefits for rural communities, Cambodia could implement subsidies or pilot projects in remote provinces like Mondulkiri and Ratanakiri, where terrestrial internet is not viable. Such initiatives would make Starlink’s services accessible to underserved areas and promote rural digital inclusion.
Building local technical capacity is equally important. The government should offer training programs to equip Cambodian technicians and IT professionals with the skills needed to maintain and integrate satellite internet technologies. This would reduce dependence on foreign expertise and build long-term digital resilience. Lastly, Cambodia should establish a cybersecurity monitoring framework specifically for satellite communications. Expanding the Telecommunication Regulator of Cambodia’s (TRC) capabilities to monitor satellite internet traffic for cybersecurity threats, while respecting user privacy, would mitigate potential national security risks associated with Starlink’s operations.
IV. Conclusion
As Starlink expands globally, Cambodia must adopt a strategic approach to maximize its benefits while managing associated risks. Priorities should include boosting digital literacy, strengthening cybersecurity, and carefully managing geopolitical considerations. Without proper policy preparation, Cambodia risks losing regulatory control and damaging domestic industries. However, through strategic regulation, negotiation, and partnerships, the country can overcome infrastructure challenges and accelerate digital development, especially in rural areas. A balanced approach that fosters innovation while protecting national security and economic sovereignty is crucial.
Starlink’s entry into Cambodia offers a host of opportunities to improve digital connectivity, empower citizens, and stimulate economic growth. However, its implementation will require careful regulation, collaboration between stakeholders, and an awareness of the geopolitical implications. By positioning itself wisely, Cambodia can leverage the benefits of Starlink’s technology while addressing the challenges that come with such a transformative shift.
Thong Mengdavid, Security and Geopolitical Analyst
=FRESH NEWS
Photo from NBC News
