Elon Musk’s Chinese rival in the satellite internet business plans to start operations in Brazil in 2026, the head of the Shanghai-based company told Bloomberg News on Tuesday.
SpaceSail’s Jason Jie Zheng signed a memorandum of understanding with Brazilian telecommunications company Telecomunicacoes Brasileiras SA to study demand for satellite Internet in areas where fiber optic infrastructure does not serve.
The MOU was concluded in the midst of President Xi Jinping’s visit to Brazil. He attended the Group of 20 summit in Rio de Janeiro and will sign several agreements with President Luiz Inácio Lula da Silva in the capital Brasilia on Wednesday.
Lula is looking to China to help Brazil’s economic development. But it’s a pivot that risks clashing with Donald Trump, as the US president-elect has vowed to get tough on China and push it into the US.
Chinese investment in Brazil is moving from announcement to conclusion. BYD’s largest electric vehicle operation outside Asia and a local partnership with Chinese smartphone maker Oppo are two such projects.
In a brief interview after Tuesday night’s ceremony, Jie Zheng said SpaceCell will begin providing Internet in Brazil within two years and will open a subsidiary in the country by the end of this year.
“Our MOU with Telebras is not only a partnership but also a shared commitment to empower Brazil’s underserved regions,” he said in a speech. “By combining Telebras’ expertise with SpaceSail’s innovative solutions, we want to support Brazil’s national initiative with our broadband services and digital industrial solutions and access essential services such as education, public health, government “
SpaceCell launched its first batch of 18 satellites into orbit in August, with another 18 launched last month. That leaves 600 plus before the first phase of its planned bridge is ready, targeted for completion by the end of next year.
This week’s event follows a visit by the Brazilian government to the SpaceCell headquarters in October, following a months-long standoff between Musk and Brazil’s highest court that resulted in a multibillion-dollar bailout of Latin America’s largest economy. resulted in fines and banning of X.
Starlink had frozen his bank accounts in Brazil to force X to comply with legal orders. Musk eventually relented, the accounts were blocked and nationwide access to the American billionaire’s social media platform was restored.
Starlink is the leading provider of satellite internet services in Brazil with a 46% market share. Musk’s company holds just 0.5 percent of the country’s total broadband market, with 265,000 customers as of September.
Communications Minister Jocelino Filho denied any vindictive link between Brazil’s spat with Musk and the association of its Chinese rivals in the sector.
“Brazil is always with open arms to anyone who can offer the Brazilian population quality services with reasonable prices and security,” Filho told reporters. “Nothing is good in any industry when you only have one supplier,” he said.
