Starlink, the satellite internet service owned by Elon Musk’s SpaceX, has been awarded a contract by Mexico’s state energy firm to provide services until December 2026. The contract, valued between 887.5 million pesos ($51 million) and 1.8 billion pesos ($101 million), was granted by Mexico’s Comision Federal de Electricidad (CFE) after Starlink offered the most favorable pricing conditions.

Under the agreement, Starlink will support CFE in expanding internet access across rural areas of Mexico. The contract, which began last month and will continue until December 31, 2026, will provide the necessary infrastructure for CFE’s internet rollout.

The details of the contract were revealed in documents seen by Reuters. According to these documents, Starlink was selected based on its pricing, which outperformed bids from two other companies. The contract is expected to play a crucial role in bridging the digital divide and providing reliable internet services to underserved communities in Mexico.

Neither CFE nor Starlink have provided immediate comments on whether the contract has already commenced or the status of Starlink’s other pending bids. It is yet to be confirmed whether Starlink has started working on fulfilling the terms of the contract.

The agreement between Starlink and CFE is a significant development in Mexico’s efforts to improve internet connectivity in remote areas. Through this collaboration, more residents in rural Mexico will have access to high-speed internet, enabling them to participate in digital opportunities and access online resources for education, communication, and economic growth.

The contract value, estimated to be worth between 887.5 million and 1.8 billion pesos, reflects the importance and scale of this project. By leveraging SpaceX’s satellite technology, Starlink aims to revolutionize internet access and bridge the digital divide globally.