Starlink resellers operating illegally – PUC warns of prosecution

Chairman of the Public Utilities Commission (PUC), Dr Nanda Gopaul, has warned that individual companies that have begun to advertise the sale of the Starlink internet services at exorbitant prices are currently operating illegally, and the PUC will be taking steps to prosecute businesses found doing so.

Starlink, the satellite internet service operated by Tesla and ‘X’ owner Elon Musk, began operating in Guyana earlier this month. Within days of the company’s entry to Guyana’s telecommunications market, several companies began popping up, mainly on social media, offering the service at steep markups.

Gopaul explained that given that the situation has only recently developed, the PUC is still looking into the situation with the ultimate aim of going after the parties.

“They cannot do that; they will be violating the law. It just came to our attention recently, and we discussed it with Starlink, with a view of prosecuting them,” Gopaul said.

“They will be deemed to be ripping off consumers. They cannot operate outside of the law. We have given Starlink approval of the rates they requested because we believe that [the approved rates] were competitive, anything above those rates will be operating outside of the law.”

In Guyana, Starlink is currently offering two monthly subscription plans: the “Residential” for $11,000 per month, and the “Residential Lite” for $7400 per month. However local resellers on social media are advertising the monthly subscriptions for as much as $27, 500 – $79,000.

Meanwhile, though Starlink website is retailing the equipment at $82,000 for the “Starlink Standard Kit” and $42,000 for the “Starlink Mini Kit”, locally pages advertising on social media are selling the equipment at markups as much as $128,000 – $140,000. The advertisers are particularly targeting interior locations, where mining takes place, and where internet services are limited.

Gopaul underscored that the PUC has not given permission to any entity to market internet services outside the prices approved for Starlink.

“Before any rate is introduced the approval of the PUC is necessary. We have approved the request by Starlink of the rates which they will charge for services rendered in Guyana and those should be the only rates, anything over and above that will be deemed illegal by anyone,” Gopaul said.

Gopaul noted that Starlink has established that any entity selling their service outside of the approved prices is not affiliated with the company.

Disassociated

“We have had discussions with Starlink representatives and they have disassociated themselves from any person who may have gone outside of there conditions which they would have set,” Gopaul said.

“We will be warning consumers not to buy services from persons who are charging exorbitant prices and are claiming to be representatives of Starlink or any other company charging rates above what we have authorised, it is illegal.”

The PUC is the regulatory body in Guyana responsible for overseeing and regulating essential utility services provided by licensed utility companies including the electricity, telecommunications and water.

The PUC operates independently, guided by the provisions of the Public Utilities Commission Act.