Critics question expedited process, lack of bidding, and financial burden on provinces.
On Wednesday, President Javier Milei finalized a contract between the National Communications Entity (ENACOM) and Elon Musk’s company Starlink to bring satellite connectivity to 6,000 rural Argentine schools.
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“While the initiative seeks to close the digital divide in schools with deficient or nonexistent service, resolutions 663/2026 and 857/2026 raise alarms over a lack of transparency, express deadlines, and a financial scheme that amounts to a windfall for the U.S. company and a future commitment for provincial economies,” journalist Martin Becerra explained in an analysis published in Letra E.
The ENACOM-Starlink project has an initial budget of US$21.8 million. Of that amount, Starlink will “donate” US$9.9 million in equipment over two years of service, while the Argentine state will contribute US$11.8 million in cash for the connectivity project over three years.
Concerns arise from the discretionary nature of the decision-making. For example, the speed of the contract signing reflected irregularities, as Starlink submitted its letter of intent on July 15, which was approved just eight days later without any objections.
To expedite this fast-track process, Argentine authorities did not call for a public tender, bidding process or price comparison. In response, lawmaker Agustin Rossi filed requests for reports to learn the rationale behind the measure and to question why public alternatives such as the Argentine Satellite Solutions Company (ARSAT) were not considered.
Javier Milei, Elon Musk y Starlink: conectar a escuelas rurales costará casi el triple de lo que cobra ARSAThttps://t.co/gHjZk7egwe
— IndyTrabajadores (@CMITrabajadores) August 25, 2026
The text reads, “Javier Milei, Elon Musk and Starlink: connecting rural schools will cost almost three times what ARSAT charges.”
Additionally, the valuation of the school satellite connectivity project was set unilaterally by Starlink. When the total cost is prorated per school, the resulting price exceeds the standard residential subscription that Starlink markets in Argentina, transforming the so-called “donation” into a screen to validate a monthly fee set at the operator’s convenience.
To this financial opacity, a lack of planning is added. ENACOM rushed the signing without first identifying which schools need the connection and without consulting the subnational governments that manage those schools.
This lack of coordination between government levels undermines the long-term sustainability of the project, as Argentine provinces will have to assume the costs set by Starlink when national funding ends after the third year.
In this way, the agreement with Starlink will end up being a costly service for provincial governments whose budgets have been reduced by Milei’s austerity measures. The connectivity service is also denominated in dollars, so any devaluation of the Argentine peso will further drive up its budget costs.
“Provinces and municipalities will have to cover the cost of Starlink’s corporate service, estimated at US$160 per month per school. This figure contrasts sharply with the US$60 that ARSAT charges for similar services,” said Irina Sternik, a journalist specializing in technology.
The disadvantageous conditions of the ENACOM-Starlink deal do not end there. If a school cannot connect due to local technical deficiencies, Starlink will not be required to refund the funds allocated for that school.
“The agreement exposes Milei’s preferential treatment toward his revered Musk. With just two and a half years in the Argentine market, Starlink now gets to capitalize on public funds accumulated over years in the Universal Service Fund thanks to contributions from the same local providers who were excluded from the bidding process,” Becerra commented.
teleSUR/ JF
Source: Letra E
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