Elon Musk's Starlink now controls at least one-fifth of New Zealand's rural broadband market, raising alarm bells about monopoly risk as domestic competitors fold and the country becomes dependent on a satellite service that could be "switched off" at any time.
Since entering New Zealand in 2021, Starlink has rapidly captured rural schools, farms, households, and Civil Defence emergency services, according to RNZ. The speed of that expansion is now threatening to eliminate locally-owned alternatives entirely.
Alex Stewart from WombatNET, a domestic wireless internet provider, warned: "If Starlink were to be switched off today, that probably would be quite bad for New Zealand." He's urging government analysis of this dependency—but so far, Wellington isn't listening.
A Commerce Commission report by Richard Feasey stated plainly: "There is otherwise a material risk that Starlink would win the competition 'for the market' and become the dominant if not monopoly supplier."
Mate, when your critical rural infrastructure depends on a satellite constellation controlled by a billionaire with a track record of erratic decisions, maybe it's time to worry.
Shortly after Feasey's October report, Bay of Plenty WISP Evolution Networks entered liquidation. Stewart notes this pattern validates industry warnings from the past four years—yet no government action has followed.
A Federated Farmers survey from September showed wireless broadband served 44% of surveyed farms, while satellite grew to 36%—a shifting trend that concerns agricultural groups about losing locally-owned providers who understand rural New Zealand's specific needs.
The government's response? MBIE states Starlink's growth reflects positive competitive impact with lower prices and better speeds. They're monitoring developments through pending telecommunications regulation amendments.
