Elon Musk’s Starlink receives a warning from Australia’s communications regulator

Communications regulator ACMA says Starlink failed to make key disclosures in its promotional offers.

Elon Musk has been criticised over revelations he refused a Ukrainian request last year to activate his Starlink over the Russian-annexed Crimean city of Sevastopol.

Australia’s communications watchdog ACMA has issued a caution to UAS billionaire Elon Musk’s satellite internet provider Starlink for failing to comply with advertising rules.

Starlink, which is a subsidiary of Mr Musk’s space flight company SpaceX, has quickly gained popularity since it was launched in Australia in 2021, particularly among rural users who view it as an alternative to the NBN.

The firm caught the attention of the Australian Communications and Media Authority as a result of a consumer complaint that Starlink offered a promotion in July 2023 with a limited-time offer that had no end date.

Starlink has now been directed to comply with Australia’s Telecommunications Consumer Protections Code.

“Under the TCP code, if a special promotion is advertised as being available for a limited time only, telcos must be transparent about the date the promotion will end,” ACMA said in a statement on Tuesday.

“When advertising special promotions, telcos must include information about important limitations to allow consumers to make informed choices.

“Telcos may face penalties of up to $250,000 for breaching ACMA directions to comply with the TCP code.”

Starlink was launched in Australia in 2021 and offers unlimited data for $139 per month along with a hardware fee of about $900. Its speeds are similar to that of NBN’s 100Mbps plans.

The company, which is currently offering customers 50 per cent off upfront costs if they purchase refurbished hardware, uses thousands of low-orbit satellites to connect people in remote areas around the world, including across most of Australia.

Starlink is thought to have about 100,000 Australian customers, and 1.5 million customers globally. This year it inked connectivity partnerships with Telstra and Optus.

Investment in low earth orbit (LEO) satellite-based internet services has skyrocketed in recent years, with the technology able to connect some of the world’s most remote locations to reliable high-speed broadband.

Statistics in February showed some 10,000 users had ditched NBN’s satellite products over the last 12 months, switching to rival options including Starlink.

Critics have questioned whether NBN Co’s Sky Muster service could be made obsolete by options like Starlink, which have proved attractive to rural customers who were experiencing poor speeds and struggling with strong internet coverage.

Mr Musk faced controversy last week when it was revealed he refused a Ukrainian request last year to activate Starlink in the Russian-annexed Crimean port city of Sevastopol to aid an attack on Russia’s Black Sea fleet.

The entrepreneur claimed he had feared complicity in a “major” act of war.

Originally published as Elon Musk’s Starlink receives a warning from Australia’s communications regulator