The telecommunications firm has made official its announced strategic alliance for B2B resell with Elon Musk's satellite service.
A lecture by the country's most famous astronomer, Sergio Massa, and the performance of Mozart's Jupiter Symphony were some of the amenities with which Entel officially launched its partnership with Starlink in the Chilean capital to offer satellite internet service to companies.
This partnership, which focuses on a B2B (business-to-business) resell business model, allows the Chilean telecommunications firm to offer Starlink satellite internet services to companies of all sizes, from small and medium-sized businesses to large corporations.
“What sets this offer apart is the integration of Starlink’s cutting-edge technology with Entel’s robust infrastructure and value-added services,” said Delia Lazarte, Market Manager for Network and Data Solutions at Entel Empresas, during the launch on August 28.
This collaboration marks a significant milestone in the race to bring high-speed internet to the most remote corners of the continent, with a particular focus on the business sector in Chile and also Peru, says the executive.
“This alliance with Starlink allows us to incorporate its solutions into our portfolio of services and thus connect companies throughout the country with cutting-edge satellite technology,” Lazarte emphasizes.
Although the Starlink service arrived in Chile in 2021 and today has more than 40 thousand individual subscribers, the executive highlights the importance of Entel being in the equation for business clients: "Entel is a service provider with extensive experience in business connectivity solutions. We have a robust network infrastructure, a highly trained human team, and a service model aimed at providing the best experience for our clients, whether they are SMEs or large corporations."
What distinguishes Entel’s offering from a direct subscription to Starlink is the set of value-added services that accompany it. These include 24/7 monitoring, proactive network management, integration with existing private networks and dedicated technical support. In addition, Entel offers an observability service that allows companies to monitor key indicators of their connectivity in real time through a web or mobile application.
FROM GEO TO LEO
The satellite technology of Starlink, one of the signatures of South African-born billionaire Elon Musk, represents a dramatic shift from traditional geostationary satellite systems, known as Geo.
Using a constellation of satellites in low Earth orbit (LEO), Starlink can deliver significantly higher internet speeds and lower latencies than its predecessors.
"The big disruption is that the satellite technologies used were based on geostationary satellites. So the wave had to travel a much longer path, from Earth to the geostationary orbit. The advantage of these satellites is that, being closer to Earth, the wave travels a shorter distance, therefore, the latency is very low" explains Lazarte.
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This technical improvement has profound implications for businesses operating in remote areas or areas poorly served by conventional terrestrial internet infrastructure.
Industries such as mining, agriculture, forestry and fishing, which often operate far from urban centres, can now access high-speed internet connections that were previously impossible or prohibitively expensive.
The service is not limited to large corporations.
"Companies that can make use of these solutions range from SMEs that need to connect with their customers, access their email, be able to access their products through e-commerce, as well as large corporations that have special needs depending on their number. Mining companies, super isolated areas, exploitation areas, and forestry areas as well," explains the Entel manager, to show the versatility of the offer.
The expansion of this service to Peru underlines Entel’s regional ambition. While specific details about the launch in Peru have not yet been made public, the confirmation that the alliance covers both countries suggests that Entel is positioning itself as a major player in the business connectivity revolution in Latin America.
This strategic move comes at a crucial time for the Latin American economy. As the region looks to recover from the economic impacts of the COVID-19 pandemic, reliable, high-speed connectivity has become more crucial than ever for business competitiveness. The ability to operate efficiently from remote locations, access global markets, and leverage cloud-based technologies could be a decisive factor for economic growth in the years to come.
However, the success of this initiative is not without challenges. Satellite technology, while promising, still faces hurdles such as sensitivity to weather conditions and the need for a clear line of sight to the sky. In addition, the rapid expansion of the Starlink satellite constellation has raised concerns among astronomers about light pollution and interference with astronomical observations. Added to this is its high cost, compared to internet service in remote areas or fiber optic connection, and intermittency due to atmospheric and climatic phenomena.
Other US companies are also growing in the region, such as Hughes.Net, owned by EchoStar, with a presence in Chile, Peru and Colombia, and which began operations in Argentina in April of this year. Meanwhile, Amazon's Kuiper project, owned by Jeff Bezos, which also operates with low-orbit satellites, is expected to be launched at the end of this year and will begin commercialization in Latin America in the first quarter of 2025.
The region is highly attractive for these businesses as there is still a significant connectivity gap. According to data from Markets and Markets, the high and low orbit satellite internet market was worth US$4 billion in 2023 and is projected to reach US$17 billion globally by 2028.
Despite these challenges, the transformative potential for businesses in Chile and Peru is undeniable. The ability to bring high-speed connectivity to previously inaccessible areas could unleash a wave of innovation and economic growth, enabling local businesses to compete on a level playing field in the global digital economy.
Looking ahead, Entel is already working on new connectivity services for its customers: although the current launch is focused on satellite internet for businesses, the company has hinted at plans to launch Starlink's "Direct to Cell" service later this year, which would allow direct cellular communication via satellite for those who have cellular service with the firm.
