The attention to Musk and Starlink comes as the billionaire-led DOGE office set up by President Trump recently cancelled a $US17 million project intended to provide tax policy advice to Liberia. Musk took to his X account to announce the move, emphasizing the department’s mission to reduce government waste and increase the efficiency of U.S. federal operations, even amid report that his company, Starlink is trying to avoid paying taxes for its operation in Liberia.
Monrovia – A telephone call from Elon Musk to Liberian President Joseph Boakai last July set the pace for the billionaire’s flirtation with the Liberian government as his company, Starlink sought an entry into the small telecommunications market dominated by the French company Orange and the South African giant, Lonestarcell/MTN.
By Rodney D. Sieh, [email protected]
Musk is head of President Donald Trump’s Subcommittee on Delivering on Government Efficiency (DOGE), with a mandate to stamp out the scourge of improper payments and fraud” to investigate the hundreds of billions of taxpayers’ dollars wasted annually on improper payments and fraud. However, a federal judge last week, extended a block on Musk’s government cost-cutting team from accessing payment systems at the U.S. Treasury Department, while another judge allowed the billionaire’s DOGE staffers to access records at health, labor, and consumer financial protection agencies.
In the call last July, President Joseph Boakai’s government touted the call as strategic, declaring that it provided an opportunity for Mr. Musk to highlight the importance of such engagement which had the potential of building long term mutually beneficial outcomes. During the discussion, Mr. Musk emphasized the significance of the Starlink program, a satellite internet constellation operated by Starlink Services, LLC, with coverage of 80 countries, and articulated his support for advancing initiatives related to education and healthcare.
At the time, the Boakai administration underscored the call as a pivotal moment in advancing international partnerships and leveraging technological innovation for the betterment of Liberia and its citizens.
The billionaire, who heads US President Donald Trump’s Subcommittee on Delivering on Government Efficiency (DOGE) is declaring war on Waste in America while slashing US$17 million in aid to Liberia intended to provide tax policy advice. However, an investigation by FrontPageAfrica has learned that an agreement with the Liberia Telecommunications Authority Falls Short of specifics and what Liberia will get in return for a one-year provisional license to operate a high-speed internet program, as Musk’s Starlink is coming Under fire from other African and Caribbean countries for dodging taxes, breaching regulations and hurting competition
Months later, the Liberia Telecommunications Authority (LTA) signed a one-year licensing agreement with Musk’s Starlink satellite internet service, in a bid to boost coverage across the country despite concerns that the already tight telecommunications market may be too small for a third major player. According to the LTA, only 30 percent of Liberia’s 5.3 million people currently have access to reliable internet services, according to a statement on the LTA website.
Mr. Abdullah L. Kamara, Chair of the LTA explained after the signing that with the arrival of Starlink, Liberia was aiming to push that number towards 100 percent. “Every village, town, and even your farm can have access to the internet, thanks to the agreement,” said Kamara.
FrontPageAfrica has however, learned that the Starlink team which recently visited Liberia fell short of committing to payment of taxes for its license to operate in Liberia. It is unclear why the LTA did not make the issue a priority for a nation in desperate need of all the money it can get.
Agreement Short on Details, But…
While the LTA announced the issuance of a one-year provisional license to Starlink, which started operations last November, no details of the agreement have been made public. However, when contacted, Jarsea Burphy, the head of communications at the LTA read a portion of the one-year provisional agreement during which time the LTA will study the company’s model.
Burphy says Starlink did make a US$3000 payment for the license which will allow them to liaise with local internet service providers, as well as resellers and retailers. As part of the agreement, the licensee, Starlink, is obligated to furnish the LTA with its quarterly performance every thirty days. The licensee is also obligated to make an annual fee of 0.5 percent for the Universal Access Fund in the same manner the other carriers Lonestarcell MTN and Orange are doing. The company is also obligated to make an annual spectrum fee of US25,000.
At the time of the signing of the agreement, LTA chair Kamara stated that “the one year is intended for all of us: they, ourselves, and the marketplace to understand the real impact — and then after one year we will issue the continuing license with any amendment that is necessary. Starlink’s entry into the market could be transformative, especially for rural areas with limited connectivity.”
Mr. Dorbor Jallah, Director General of the Liberia Revenue Authority (LRA) acknowledged that the company has registered as a local business, and the LRA is engaged with them regarding their tax obligations although he says they have not yet paid a penny since they commenced the Liberia operations.
DG Jallah explained that the LRA is currently in the process of bringing in a technology that will give the authority real time visibility into the sales and payments of the telecommunications operators (MTN, Orange, Starlink, etc.), the mobile money operators, and gaming operators (betting and gambling). “These are operations we have had very little visibility in the past,” Mr. Jallah told FrontPageAfrica.
In the wake of the agreement between Starlink and the LTA, what is still unknown are the details. Will Musk and his Starlink pay taxes to the Liberian government’s coffers? What would Starlink’s presence mean for the two major players, Lonestarcell MTN and Orange. Both Orange and Lonestar allow customers to pay taxes and fees using mobile money and in turn pay taxes to the Liberia Revenue Authority. In fact, last June, the LTA imposed fines on both Lonestarcell MTN and Orange due to what the LTA described as serious violations and a refusal to submit critical data with significant revenue implications. The violations, according to the LTA, primarily revolved around Floor Price regulations. Both companies allegedly engaged in a price war to offer consumers more minutes per dollar than the market allowed, thus reducing government revenue. The LTA said the violations led to increased network traffic, deteriorating service quality, and declining revenue.
No Taxes Yet, LRA Says
LRA DG Jallah says based on his conversations with Starlink, there is no indication of any form of an unwillingness on Starlink’s part to pay taxes. The LRA DG however notes that the company is still in the process of establishing their local presence. But where it gets sticky is that Starlink has already commenced operation without paying a dime.
Mr. Jallah says the LRA will do everything possible to ensure that Starlink follows the tax regulations. “We have provided clarifications on their tax obligations, and they are still in consultations with my domestic tax team. With the coming online of the new technology I mentioned previously, we will have full visibility and they will have to pay all their taxes but they have not yet started paying taxes. We are working with them to do their first filing which will bring them into the tax net.”
We have provided clarifications on their tax obligations, and they are still in consultations with my domestic tax team. With the coming online of the new technology I mentioned previously, we will have full visibility and they will have to pay all their taxes but they have not yet started paying taxes. We are working with them to do their first filing which will bring them into the tax net.
Dorbor Jallah, Director General, Liberia Revenue Authority
The tax and regulatory guidelines’ questions are key to Liberia’s relationship with Musk and Starlink, especially amid recent bleak outcomes from the company’s venture in other African countries.
Starlink is already present in Nigeria and in several southern African countries including Botswana, Mozambique, and Zambia. However, Starlink has still not succeeded in deploying its technologies in South Africa, Musk’s home country.
Last April, Starlink was forced to end its operations in Cameroon because the government of Paul Biya clamped down on the company’s refusal to obtain a license to operate there. The government regulator, the Ministry of Post and Telecommunications, which oversees licensing, spectrum allocations and ensures fair competition, declared that Starlink was operating without a license and posed a threat to national security and fair competition.
Although some critics and tech watchers labeled the move as anti-competitive, others argued that the government was out to protect the state telecom monopoly, Camtel.
Musk and Starlink are also facing trouble in the Caribbean Community, including the Island of Antigua. Many are pursuing the company for unpaid satellite internet services.
In fact, the New York Amsterdam News reported last week that Antigua has deliberately limited the growth of Starlink services to the country. Authorities in Antigua say Musk owes the Eastern Caribbean nation money for services rendered to internet users on the island, while Belize says Starlink’s services will only be made available to far-flung areas in the country, limiting its ability to out compete local internet providers. The newspaper noted that both Prime Minister Gaston Browne in Antigua and his chief of staff Lionel Hurst have said the issue has been discussed at cabinet level several times in recent months and there are no plans to let up on demands for Musk to make outstanding payments.
African, Caribbean Nations Raise Tax, Regulations Concern
The Amsterdam News reported that Musk and Starlink have been trying to break into the Caribbean market for the past three years and have had success in Jamaica, Belize, and Antigua. However, the paper notes that Prime Minister Hurst said the technology being used by Starlink makes it difficult to regulate the company and make it comply with local laws. “I don’t think the quantum has yet been determined, but we do know that there are over 100 people that are utilizing Starlink at the moment, and the other telecommunications companies must pay (sales taxes) on the services they provide to consumers,” Hurst told reporters. “Starlink, because of its direct connection with the customer, is not reporting the companies or the persons who are utilizing its services, but we do know that it is operating out of Antigua, and so the government intends to collect the taxes. This is some of the information that we have garnered. The tax is levied at 17%.”
In another Caribbean Island, the oil-rich Guyana says it is considering an application from the company to begin offering services in the oil- and gas-rich nation.
Prime Minister Mark Phillips recently told reporters that “Starlink has an application on file and it’s going through the process. In Belize, authorities have denied Starlink’s application for a full license, limiting them to unserved areas in the Central American nation that is also a Caricom member. Prime Minister John Briceno said loyal companies providing services to the country must be protected, something Liberia failed to do. “We are not giving them an open license, but if a citizen comes and says — and we have been doing that forever — ‘We want a satellite dish,’ you get a permit to do that. If you … live deep in the bush and do not have access to internet service and want to bring it in, they will approve it. I think that is the best compromise,” Prime Minister Briceno is quoted as saying.
The Moroccan government has insisted that Starlink applies to the Agence Nationale de Reglementation des Telecommunications before it can set up in Morocco. Starlink
Starlink has also been working to establish a presence in Senegal, a market it has been eyeing for several years. Its first attempt in 2023 to break into the market turned into a fiasco. Five of its employees arrived in the country to market their satellite connection offer without prior authorization and were arrested on the orders of the Telecommunications Authority. However, relations with the Senegalese government have improved since President Bassirou Diomaye Faye came to power last April, and Starlink now hopes it can obtain a license to launch its activities there this year. This matter was raised during Faye’s visit to the United States last September, during which he met with one of Starlink’s vice-presidents, Michael Nicolls at its premises in California.
Even in Senegal, news of Starlink’s interest is causing problems. The company’s interest is not sitting well with Sonatel, the leading semi-public telecoms operator co-owned by the Senegalese state (26.67%) and France’s Orange (42.3%). A handful of senior executives from Sonatel, which also operates in Mali, Sierra Leone, and Guinea, have in recent weeks expressed their concern to the government about Starlink’s impact on their business were it to be established in the country.
In east Africa, Starlink has been operating in Kenya since July 2023. A year and a half after its arrival, it represents just 1% of the national market but has been growing rapidly since it introduced an aggressive strategy last year driven by lower prices. Unlike Liberia, recent reports suggest that Starlink is expected to pay taxes in Kenya, with the Kenyan government proposing new regulations requiring satellite internet providers like Starlink to pay a significant license fee, which could be considered a form of tax on their operations in the country; this has raised scrutiny about the company’s tax obligations in Kenya. Kenya’s Communications Authority has proposed significantly increased license fees for satellite internet providers like Starlink, potentially amounting to millions of dollars annually.
Kenya, Others Demanding Taxes from Starlink
While Kenyan President William Ruto sees Starlink operations as healthy for competition, the company is being criticized by private players such as internet service provider Jamii Telecommunications. A parliamentary committee is currently looking into the Starlink operations. The parliamentarians want to examine the firm’s commercial practices, in particular its compliance with local tax laws and consumer data protection. Authorities are examining all the parameters while its neighbors, Tanzania, is due to examine a license application from Starlink, which has also announced its plan to set up operations in Uganda and Burundi.
The concerns over Starlink amid tax and regulations concerns come as Musk recently announced on Twitter that he’ll pay more than $11 billion in taxes this year in the US, an amount that could constitute a record payment to the US Internal Revenue Service. A recent report by ProPublica last June said Musk paid little income tax relative to his outsize wealth. But he’s pushed back against that characterization, saying he doesn’t draw a salary from either SpaceX or Tesla, and pays an effective tax rate of 53% on stock options he exercises. He added that he expects that tax rate to increase next year.
The concerns also come amid reports that Musk received millions of dollars from the United States Aid for International Development, a key US development program the billionaire is pushing to shut down. While public records actually show about $1 million in contracts, a Washington Post report from the year 2022 indicated that the USAID spent $3 million on Starlink devices for Ukraine.
The attention to Musk and Starlink comes as the billionaire-led DOGE office set up by President Trump recently cancelled a $17 million project intended to provide tax policy advice to Liberia. Musk took to his X account to announce the move, emphasizing the department’s mission to reduce government waste and increase the efficiency of U.S. federal operations. The cancellation highlights the department’s broader aim of trimming expenditures, which has raised concerns in countries like Liberia that rely on international aid and expertise.
While very little is known about the deal the LTA signed with Starlink, the Boakai administration, which is yet to respond to Mr. Musk’s cancellation of US$17 million to Liberia, faces a daunting task: Allow Musk to have his way or follow the footsteps of other African and Caribbean countries, insisting on adherence to payment of taxes and complying with telecommunications regulations.
