SpaceX’s satellite internet service, Starlink, has been awarded a contract by Mexico’s state energy firm, Comision Federal de Electricidad (CFE), to offer internet services in rural areas of the country until December 2026. The contract, valued between 887.5 million pesos ($51 million) and 1.8 billion pesos ($101 million), was selected over two other competitors due to its favorable price conditions according to CFE documents. This agreement is part of Mexico’s larger efforts to expand internet access in remote regions.

Starlink’s global internet coverage aligns with President López Obrador’s administration’s focus on improving internet connectivity in isolated areas. The contract, awarded in October, commenced last month and is set to continue until December 31, 2026.

This is not the first time Starlink has ventured into the Mexican market. The satellite internet company has previously collaborated with Mexican firm GlobalSat to provide internet services to residents in remote locations. GlobalSat, which has already secured two CFE contracts, has been utilizing Starlink antennas since February, showcasing the potential for enhancing connectivity in underserved regions.

Apart from Starlink, Elon Musk’s presence in Mexico extends to establishing a Tesla Gigafactory in Nuevo León. This investment is anticipated to have a significant positive impact on the local economy. Although the exact timeline for construction commencement remains unclear, the company has recently obtained all the necessary permits to proceed.