Musk's Starlink secures $90 million contract to offer free internet in Mexico


FILE PHOTO: SpaceX founder and Tesla CEO Elon Musk speaks on a screen during the Mobile World Congress (MWC) in Barcelona, Spain, June 29, 2021. REUTERS/Nacho Doce/File Photo

MEXICO CITY (Reuters) -Starlink, the satellite internet service of billionaire Elon Musk, has secured a 1.56 billion peso ($89.80 million) contract to offer free internet in Mexico until the end of 2026, a Mexican government official said on Wednesday.

Musk's company won the contract as it offered the best prices in the public tender offer, Carlos Emiliano Calderon, coordinator of Mexico's digital strategy, said at a regular government morning press conference.

Mexico has signed contracts for free internet with nine companies, including Starlink, Calderon added.

Starlink is also set to provide infrastructure for Mexico's state energy firm through December 2026, according to documents seen by Reuters.

The contract to work with Mexico's Comision Federal de Electricidad (CFE) is valued at between 887.5 million pesos and 1.8 billion pesos.

($1 = 17.3725 Mexican pesos)

(Reporting by Raul Cortes Fernandez; Editing by Sharon Singleton)

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