Starlink, the satellite internet service by SpaceX, the rocket manufacturer owned by billionaire Elon Musk, has won a bid from the Mexican state energy company to provide internet services until December 2026. The contract is estimated to be worth between 887.5 million pesos ($51 million) and 1.8 billion pesos ($101 million), according to the decision by Mexico’s Federal Electricity Commission (CFE).

Starlink’s offer was chosen over those from two other companies because it “offered the best terms in terms of price,” according to the documents. The contract will provide the necessary infrastructure for internet access deployment in rural areas of Mexico, according to another document seen by Reuters, a draft contract from CFE.

The contract reportedly began last month and will continue until December 31, 2026. The CFE and a legal representative of Starlink have not immediately responded to requests for comments regarding whether the contract has already started or the status of other open public procurement bids from Starlink.

This agreement with Starlink is expected to improve internet connectivity in remote areas of Mexico, especially in rural communities. It will provide access to high-speed internet services that were previously unavailable to these regions. The deployment of Starlink’s satellite internet service will enable residents in these areas to access online educational resources, telemedicine services, and economic opportunities.

SpaceX’s Starlink satellite constellation aims to provide global broadband coverage from low Earth orbit. It consists of thousands of mass-produced small satellites in low Earth orbit, working in combination with ground transceivers. The service is particularly beneficial in areas where traditional terrestrial internet infrastructure is not feasible or cost-effective.

This contract win in Mexico is a significant achievement for Starlink, affirming its position as a leader in satellite internet services and highlighting the growing demand for reliable internet connectivity in underserved regions worldwide.