Barran Press - Reports Unit:
The announcement by SpaceX's Starlink on September 18, 2024, via the platform X, regarding the launch of satellite internet services in Yemen has sparked questions about the service, its accessibility, and its potential impact on the economy of the Houthi movement, which is internationally classified as a terrorist organization. The telecommunications and internet sector is one of the largest revenue sources funding the group's activities.
Starlink officially launched its services in Yemen, marking it as the first country in the Middle East to enjoy full access to satellite internet.
In response, the internationally recognized Yemeni government welcomed the launch of Starlink's satellite internet service. Acting Minister of Communications Waed Badhieb described the service as a significant step forward, hinting at upcoming transformations in 2024, according to the Yemeni news agency Saba.
Badhieb stated in a press release from the Ministry of Communications that the launch of Starlink is part of the ministry's efforts to address challenges arising from the ongoing conflict and to improve communication services under the current circumstances.
The Minister discussed forthcoming changes in the telecommunications sector, which will be announced progressively according to the ministry's plan for the remainder of 2024. He emphasized that these changes aim to enhance the sector's functionality, restore the role of the ministry's institutions in promoting development, and increase revenues. This initiative is expected to ensure the sustainability and development of services to meet citizens' needs and contribute to building a modern digital future.
The Yemeni Minister of Communications also regarded the launch of Starlink as a "significant victory for the Ministry of Communications and the legitimate government," representing the first tangible steps toward digital transformation. He highlighted the ministry's commitment to providing advanced technological solutions that improve citizens' lives and foster economic and social development in Yemen, despite the challenging conditions the country faces.
Conversely, the Houthi movement has warned citizens in areas under its control against engaging with Starlink, claiming that the foreign company's internet services could undermine the ability to protect citizens' privacy and data.
The Houthis issued this warning through a statement from their unrecognized government's Ministry of Communications, accusing the Yemeni government of disregarding Yemen's sovereignty and independence, and of being willing to jeopardize the nation's security and stability for the benefit of foreign powers.
Regarding the service's entry into Yemen, Raed Al-Thabiti, a senior advisor to the Minister of Communications in the internationally recognized Yemeni government, stated that the introduction of Starlink would reduce the Houthi group's revenues from the state-controlled Yemen Net by approximately 60% in areas under legitimate authority.
Al-Thabiti further noted in an exclusive interview with "Barran Press" that the poor services provided by Yemen Net and the restrictions imposed by the Houthis on users would likely contribute to the success of Starlink, as a significant influx of users is anticipated. He suggested that this could potentially lead to a complete revenue loss for Yemen Net, estimating a reduction of between 80% to 100%.
He stated, the official launch of Starlink in Yemen is expected to significantly impact internet service providers, particularly Yemen Net, which has long been the exclusive provider of internet services in the country. Yemen Net relies heavily on traditional internet services, including ADSL and VDSL through landlines, as well as fiber optic networks.
Raed Al-Thabiti, a senior advisor to the Minister of Communications, anticipates that Starlink's services will primarily disrupt the Houthi-launched 4G service, potentially limiting sales of Houthi devices that have seen a surge in demand in recent months.
Regarding the anticipated uptake of Starlink's services, Al-Thabiti noted a growing interest in satellite internet across both government-controlled areas and Houthi territories. This interest stems from the poor quality of Yemen Net services and the restrictions imposed by the Houthi movement, despite their efforts to block Starlink devices from entering their controlled regions.
Al-Thabiti confirmed that many users in Houthi-controlled areas, particularly in rural and remote mountainous regions, are already utilizing satellite internet services.
He believes that the increasing demand for satellite internet in both government and Houthi-controlled areas will contribute to a decline in Yemen Net's revenues, especially given the deteriorating service quality and the ongoing advancements made by satellite internet companies.
In terms of service offerings, Al-Thabiti outlined three distinct services that Starlink will provide in Yemen:
He emphasized that the sole and exclusive agent for these services is the Yemeni Ministry of Communications, represented by the General Telecommunications Corporation in Aden. The ministry is currently working to open branches in various governorates to provide services, including device sales, technical support, and fee collection, with the government set to receive a percentage of device sales and service fees.
Al-Thabiti stated that the service has not imposed significant financial burdens on the Yemeni government, as it is a satellite-based service. He assured that the government would oversee, regulate, and monitor the service, maintaining control to ensure its development in the future.
He also mentioned that several devices were activated last year and this year by the General Telecommunications Corporation, indicating that owners of Starlink devices operating unofficially in Yemen would be required to register them through service points in the governorates.
When asked about the potential for satellite internet services through telecommunications companies, Al-Thabiti noted that GSM companies, including those offering 3G and 4G services, could coordinate with the General Telecommunications Corporation to leverage Starlink to enhance their internet offerings and provide better broadband services to their subscribers.
Economic journalist Mohammed Al-Jama'i remarked to "Barran Press" that the Starlink service represents a crucial step, which could have had a more substantial impact on the Houthi movement had it preceded the Central Bank's decisions and the intense economic battles waged by the bank in recent months.
Al-Jama'i explained that the revenue from this project would flow directly to the legitimate government, allowing it to control information and data flow, thereby reducing the risk of Houthi surveillance.
He pointed out that the Houthi movement controls four telecommunications companies in Yemen, serving approximately 20 million subscribers and monopolizing all their revenues. The group financially relies on the telecommunications sector, and any economic battle targeting this major financial resource would positively impact the legitimate government in Aden.
In this context, some observers note that the internationally recognized Yemeni government, which has established Aden as its temporary capital, has turned to satellite internet as a solution for providing internet services in its controlled areas. This shift follows the government's failure in August 2019 to transfer Yemen's internet gateway from Sana'a, which is under Houthi control, due to the centralized control system of Yemeni telecommunications based in Sana'a. This decision also comes after the unsuccessful launch of "Aden Net," a telecommunications service initiated by former President Abdrabbuh Mansur Hadi in June 2018.
The telecommunications sector in Yemen has become a significant economic lifeline for the Houthi movement, which has maintained control over state institutions since seizing power by force in September 2014.
Official documents from the Ministry of Communications in Sana'a revealed that Yemen Mobile's revenues for 2023 reached approximately 146.4 billion Yemeni riyals, equivalent to about $271 million at an exchange rate of 540 riyals to the dollar.
Previous statistics from Dr. Mohammed Al-Kasadi, head of the Financial and Banking Sciences Department at Hadhramout University, indicated that telecommunications revenues in 2021 amounted to 190 billion riyals, while revenues for 2022 rose to 220 billion riyals, reflecting a 30 billion riyal increase from the previous year. This trend underscores the continuous growth of telecommunications revenues due to an increasing user base and the Houthi movement's ongoing price hikes for services.
According to a report from the United Nations Panel of Experts, the Houthi movement generates approximately $2 billion annually from the telecommunications sector in Yemen, suggesting that the previously reported figures significantly underestimate the actual revenues generated by this sector for the Houthis.
Yemen currently faces challenges in internet service coverage across the country, with significant disruptions and limited access, particularly in areas far from urban centers.
The announcement by Elon Musk and Starlink came about a month and a half after the internationally recognized Yemeni government declared the launch of satellite internet services, having granted a license to Starlink.
At that time, the government stated that it had completed all necessary procedures for launching Starlink services in Yemen, promising competitive pricing for all user categories.
Starlink is a satellite-based internet service created by SpaceX, owned by billionaire Elon Musk, designed to provide internet access in underserved areas lacking traditional internet service infrastructure.
The Starlink system consists of thousands of satellites in low Earth orbit, interconnected to create a mesh network capable of delivering high-speed internet access.
The service connects users to satellites via a dish that links to the user's router and modem, which in turn connects to the internet.
This service aims to connect war-torn and disaster-stricken areas to the Internet, has been utilized by Ukraine during its ongoing conflict with Russia. Currently, the service is available in only 40 countries, excluding Palestine.