Carlos Slim cuts ties with Elon Musk’s Starlink, invests $22 billion in independent network | Company Business News

Mexican billionaire Carlos Slim has reportedly terminated his collaboration with Elon Musk’s satellite internet venture, Starlink, in a move that is set to reshape the telecommunications landscape in Latin America.

The decision, first reported byMexico Daily Post, follows increasing tensions between the two business magnates, culminating in Slim’s strategic pivot towards independent infrastructure development.

Slim’s telecom giant, América Móvil, has announced an ambitious investment of $22 billion over the next three years to enhance its own telecommunications infrastructure, the report added.

According to the publication, this initiative aims to solidify its market dominance while reducing reliance on external satellite-based services like Starlink. Analysts suggest this strategic shift underscores the competitive nature of Latin America’s telecommunications sector, where major players are vying for long-term control over the region’s connectivity.

To recall, the breakdown of relations between Slim and Musk was further fuelled by a controversial social media post from Musk, which alluded to alleged links between Slim and organised crime. Although the accusation remains unsubstantiated, the post intensified existing friction between the two billionaires. In response, Slim swiftly withdrew all business dealings with Starlink, reportedly costing Musk’s company an estimated $7 billion in anticipated revenue.

Growth prospective for Latin America

Beyond financial implications, the severance of this high-profile partnership marks a turning point in Latin America’s telecommunications sector.

Further escalating the fallout, Slim announced that his company would redirect its five-year investment—originally earmarked for Starlink—to rival firms based in China and Europe. This move not only represents a significant financial setback for Musk but also signals a shift in global commercial influence, with the United States losing a critical business foothold in Latin America to international competitors.

As the dust settles on this corporate clash, industry observers will be watching closely to see how both parties navigate the aftermath of a deal that once promised to revolutionise connectivity across Latin America.