Australia Scrutinises Risks of Growing Reliance on Starlink Ahead of SpaceX IPO
Australia’s federal and state governments are conducting an assessment of security, regulatory, and operational risks linked to the nation’s increasing dependence on Starlink, the satellite internet service operated by SpaceX. The review comes as the company prepares to list its shares publicly on the NASDAQ stock exchange.
Current Usage and Contracts
As of a 2025 government estimate, approximately 200,000 Australians are Starlink customers. Major telecommunications companies Telstra and Optus have entered into agreements with SpaceX to provide satellite phone services in areas lacking traditional mobile coverage.
Government expenditure on Starlink services has been documented across multiple levels. Federal contracts—including those for the Department of Defence and the Australian Electoral Commission—total at least A$7.13 million. When state-level contracts are included, the total exceeds A$50 million, including a A$41 million agreement with the NSW Rural Fire Service.
"The Australian government lacks direct control over the network."
— Department of Home Affairs, Cyber and Infrastructure Security Centre (May 2025)
Government Security Assessments
An internal presentation from the Department of Home Affairs' Cyber and Infrastructure Security Centre, dated May 2025, identified "availability risks due to the offshore nature of Starlink." The presentation noted that the Australian government lacks direct control over the network.
A public advisory note from the Australian Signals Directorate, issued in March 2025, stated that private satellite operators have "significant" control over their networks, which may exceed national regulatory capacity. The advisory raised concerns regarding sovereignty and national interest.
Regulatory Framework and Challenges
Starlink is subject to Australian regulations, including critical infrastructure laws and telecommunications carrier licensing. However, regulatory gaps have been identified.
In correspondence between Telstra, SpaceX, and the Australian Communications and Media Authority (ACMA), SpaceX requested evidence that it could use Telstra's spectrum from low-earth orbit. Telstra stated that its license does not extend into space, noting that spectrum at that altitude is governed by international treaties. ACMA stated it could not provide such approval. Telstra has asserted that its partnership with SpaceX complies with all applicable regulations.
Joel Lisk, a space law lecturer at Flinders University, stated that while Australia has legal mechanisms to regulate Starlink, practical enforcement over satellites in orbit remains challenging.
Past Compliance and Operational Incidents
- May 2025: ACMA found that Starlink had failed to report consumer complaint numbers as required. Starlink attributed this to an administrative oversight.
- August 2023: ACMA issued a direction to comply after Starlink breached advertising rules.
- July 2025 (Reuters report): SpaceX founder Elon Musk is alleged to have ordered Starlink coverage shut down over part of Ukraine in 2022 during a Ukrainian counteroffensive, disrupting communications. Musk has denied this account.
- Earlier in 2025: SpaceX vice president David Goldman testified that the company threatened to withdraw its service from Australia if required to bid for spectrum rights.
Upcoming Public Listing
SpaceX is scheduled to be publicly listed on the NASDAQ on June 12. The share structure reportedly allows Musk to retain control of the company. The float is expected to increase Musk's net worth significantly.
Expert Assessment
"Jurisdictions globally face a policy dilemma: authorize SpaceX or risk disadvantaging their citizens, while lacking leverage over satellites in orbit."
— Joel Lisk, Flinders University