[Starlink] Elon Musk's Starlink Terminals Are Falling Into the Wrong Hands? [from RISKS-LIST: Risks-Forum Digest Monday 1 April 2024 Volume 34 : Issue 12]

[Frantisek Borsik]

*Date: Tue, 26 Mar 2024 14:34:52 +0000*From: Henry Baker <
hbaker1 at pipeline.com>
Subject: Elon Musk's Starlink Terminals Are Falling Into the Wrong Hands?

For many years in the 1970's, a (physical) bulletin board at MIT's AI Lab
had
an article posted with the headline 'ARPAnet accused of transmitting data'.

I'm sure that there must have been many articles in the 1920's with the
headline 'Henry Ford's Automobiles are Falling into Criminal Hands', and
many articles in the 1700's with the headline 'Johannes Gutenberg's Printing
Presses are falling into Papist Hands'.

https://www.freep.com/story/money/cars/ford/2019/02/09/bonnie-clyde-chestnut-barrow-ford/2812888002/

"I have drove Fords exclusively when I could get away with one."  signed
 "Yours truly Clyde Champion Barrow." [of 'Bonnie & Clyde' fame]

Criminals breath air, drink water, eat food, use the telephone, drive the
roads, etc., -- in short -- they utilize everything that non-criminals do in
order to commit their crimes. But restricting access to air, water, food,
etc., hurts everyone a lot more than it hurts criminals -- we cut off our
nose to spite our face.

Once again, be very, very, very careful what you wish for when you start to
regulate technology that everyone wants (and needs) to use.

https://www.yahoo.com/news/elon-musk-starlink-terminals-falling-210028713.html

Elon Musk's Starlink Terminals Are Falling Into the Wrong Hands

Bruce Einhorn, Loni Prinsloo, Marissa Newman and Simon Marks
Mon, March 25, 2024 at 2:00 PM PDT

*(Bloomberg) *-- SpaceX's Starlink touts its high-speed internet as
``available almost anywhere on Earth.''  In the real world, its reach
extends to countries where Elon Musk's satellite-enabled service has no
agreement to operate, including territories ruled by repressive regimes.  A
Bloomberg News investigation identified wide-spanning examples of Starlink
kits being traded and activated illegally. How they are smuggled and the
sheer availability of Starlink on the black market suggests that its misuse
is a systemic global problem, raising questions about the company control of
a system with clear national security dimensions.  In Yemen, which is in the
throes of a decade-long civil war, a government official conceded that
Starlink is in widespread use. Many people are prepared to defy competing
warring factions, including Houthi rebels, to secure terminals for business
and personal communications, and evade the slow, often censored internet
service that's currently available.  Or take Sudan, where a year-long civil
war has led to accusations of genocide, crimes against humanity and millions
of people fleeing their homes. With the regular internet down for months,
soldiers of the paramilitary Rapid Support Forces are among those using the
system for their logistics, according to Western diplomats.  ``It is deeply
concerning because it's unregulated and headed by a private company, Emma
Shortis, a senior researcher in international and security affairs at the
Australia Institute, an independent think tank in Canberra, said of the
Starlink system. ``There's no accountability on who has access to it and how
it's being used.'' Starlink delivers broadband Internet beamed down from a
network of roughly 5,500 satellites that SpaceX started deploying in
2019. With some 2.6 million customers already, Starlink has the potential to
become a major moneymaker for SpaceX, a company that began as Musk's way to
fulfill his dream of exploring Mars and has now become the most important
private-sector contractor to the US government's space program and a
dominant force in national security.  Musk, until recently the world's
richest person, has said there will be a cap to how much money SpaceX's
launch services business will make, while Starlink could eventually reach
revenue of $30 billion a year. Starlink plans to launch tens of thousands of
additional satellites to connect places that are too remote for ground-based
broadband or that have been cut off by natural disasters or conflict.  But
given the security concerns around a private American company controlling
Internet service, SpaceX first needs to strike agreements with governments
in each territory. Where there are none, people are ``proceeding to use
Starlink without the proper coverage'' that is quite illegal and of course
should not be allowed, but it's difficult to control and manage,'' said
Manuel Ntumba, an Africa geospatial, governance and risk expert based in New
York.  In central Asia, where Starlink deals are rare, a government
crackdown on illicit terminals in Kazakhstan this year has barely made a
dent on its use. All it did was lead to higher prices on the black market,
according to a trader who imports the gear and who didn't want to speak
publicly for fear of retribution. Prior to the government intervention,
customers were able to buy the company's equipment and have it shipped via
the local postal service, the trader said.  SpaceX didn't respond when asked
to comment on a written list of questions submitted on Thursday.  ``If
SpaceX obtains knowledge that a Starlink terminal is being used by a
sanctioned or unauthorized party, we investigate the claim and take actions
to deactivate the terminal if confirmed,'' the company said in a post on X
in February.  The growing black market for Starlink has emerged in regions
with patchy connectivity, where the allure of high speed, dependable
Internet in an easy-to-use package is strong for businesses and consumers
alike.  In many ways, it's Starlink's effectiveness as a communications tool
that has made it such a sensitive matter. The US military is a customer: The
Air Force has been testing terminals in the Arctic, calling them *reliable
and high-performance*. Those same properties made it vital to Ukraine's
military in its defense against invading Russian forces. SpaceX provided the
technology to Kyiv in the early days of Russia's invasion, and Starlink has
since become crucial to the Ukrainian communications infrastructure. The US
Departcment of Defense later struck a deal with Starlink to supply Ukraine
with equipment, the terms of which were not made public.  Then in February
of this year, Ukraine said that Russia was deploying Starlink in its own war
efforts, while unverified posts on X, Musk's social network, appeared to
show Russian soldiers unpacking kits. Two House Democrats wrote a letter to
SpaceX President Gwynne Shotwell pressing her on Ukraine's claims.  ``To the
best of our knowledge, no Starlinks have been sold directly or indirectly to
Russia,'' Musk wrote on X.  Itquo;s the uncertainty about where the
satellite dishes are landing that as security officials around the world
concerned.  Starlink kits are being sold for use in Venezuela, where
individuals and entities have been subject to US sanctions for almost a
decade, most recently under President Nicolas Maduro's authoritarian rule. A
map of coverage areas on Starlink's website shows the South American nation
blacked out. Yet social media ads promote package deals for Starlink
equipment, which is widely available and admired for its reliability and
portability in a country of isolated cattle ranches and gold mines.  SpaceX
should be able to prevent Russian use of Starlink in occupied Ukraine, since
``basically every single transmitter can be identified,'' said Candace
Johnson, director at NorthStar Earth & Space Inc., a Montreal company that
in January successfully launched four satellites -- on a rocket from SpaceX
competitor Rocket Lab USA Inc. -- to identify and track objects in space.
``There needs to be more accountability: to your country, to your company,
to your shareholders, to your stakeholders,'' said Johnson, who is also a
partner with Seraphim Capital, a venture-capital firm that invests in space
startups.  In North Africa, Starlink's use in Sudan shows how terminals
arrive in a country subject to international sanctions.  There has been no
Internet in Sudan since early February. Both the Sudanese Armed Forces and
Rapid Support Forces have blamed each other for cutting the service while
the CEO of Zain Sudan, a mobile operator, said his company's engineers had
been prevented from reaching parts of the country to reconnect the network
due to insecurity and a lack of fuel.  To bypass the blackout, members of
the RSF and local business owners have smuggled Starlink devices into
Sudan's Darfur region using an organized network that registered the units
in Dubai before transporting them into Uganda by airplane and then by road
to Sudan via South Sudan, according to interviews with Western diplomats and
business owners using the devices.

Gold miners in remote areas along the borders of South Sudan and the Central
African Republic were provided with Starlink services even prior to the war
by traders working in South Darfur's Nyala City. Starlink says on its
website that a ``service date is unknown at this time'' for Sudan.

Haroun Mohamed, a trader in Nyala who transports goods across the border to
Chad and South Sudan, said the use of Starlink by RSF soldiers and civilians
was widespread. ``Ever since the eruption of war in Darfur, a lot of people
are bringing in Starlink devices and use it for business.  People are paying
between $2 or $3 per hour, so it's very good business.''

In South Africa, where Musk was born, the government hasn't yet approved
Starlink's application to operate. But that hasn't prevented a flourishing
trade in terminals there. Facebook groups feature providers that offer to
buy and activate the kits in Mozambique, where it is licensed, and then
deliver them over the border to South African customers.

There were enough users of the service in the country as of Nov. 28 that the
regulator felt the need to issue a statement reminding people that Starlink
has no license for South Africa. Unlawful use could result in fines of as
much as 5 million rand ($265,000), or 10% of annual turnover.

Regulators in other countries in Africa have issued similar
warnings. Ghana's National Communications Authority in December released a
statement demanding that anyone involved in selling or operating Starlink
services in the country ``cease and desist immediately.''

In Zimbabwe, authorities threatened raids in response to online advertising
for Starlink equipment, H-Metro newspaper reported in January. Prices for
Starlink gear on the black market ranged from $700 to $2,000, according to
local technology blog Techzim. Government officials in Ghana and Zimbabwe
have recently said they hope to allow licensed service.

Countries have different reasons for declining to cooperate with Starlink,
including stipulations that it have a local partner and concerns around data
use.

Starlink service is currently available --legally -- in eight countries in
sub-Saharan Africa, and the US company has big plans to build its user
base. It is working with local marketing partners such as Jumia Technologies
AG, an e-commerce company backed by Pernod Ricard SA that has an agreement
to sell Starlink equipment for residential use in Nigeria and Kenya. There
has been significant demand, with the first shipment to Nigeria selling out
in a few hours, according to Chief Commercial Officer Hisham El Gabry.

``Jumia is aware that there are some unofficial distributors of these
kits,'' El Gabry said in an interview. While the number of devices is not
yet at an alarming level, ``it is a point of discussion between us and
Starlink that this needs to be brought under control,'' he said.  Jumia
verifies customers, and cancels orders if they are going to traders or
unverified sources, according to El Gabry. While ``that device could
eventually end up with bad actors,'' Starlink can monitor where these
devices are connecting from.  ``If they pick up it ``connecting from a
particular militant group for instance, they can enforce that control,'' he
said.

One Facebook group of people complaining they've`been cut off suggests that
Starlink has recently de-activated some of the equipment smuggled into South
Africa. Still, social media groups point to a workaround, with terminals
re-registered in a country like Malawi and reactivated. Customers can then
make use of Starlink's roaming services, with a subscription paid through
the website.  The company offers a global roaming service with a monthly
charge of $200. Customers in South Africa can expect to pay about 12,000
rand ($630) for a kit.

In Venezuela, customers similarly get around the ban by paying for the
global service plan using an international credit card, according to people
familiar with the market, who said its use is now ``normalized.''

President Joe Biden's administration could tighten the export controls that
apply to Starlink to keep them out of the hands of American adversaries,
according to a former US government official. A security consultant who
provides training to companies on the restrictions said the real key is
trying to geolocate kits when they are turned on and blocking the ones that
are in violation of US export controls. That would require the company to
cooperate, the person said, asking not to be named discussing commercially
sensitive matters of national security.

A State Department spokesperson said that satellite constellations like
Starlink are a key tool for providing connectivity and bridging digital
divides. ``We encourage companies to take appropriate measures to seek
licenses for operating in nations around the world,'' they said.

Meanwhile, SpaceX is providing assurance to some countries that it will work
with them to keep its Starlink services out of certain areas.  SpaceX has
reassured Israel that it can geolocate and turn off individual terminals
when it detects illegal use, according to an Israeli government official.
In Yemen, meanwhile, Starlink kits are openly for sale on social media,
bought in countries such as Singapore or Malaysia, then activated on
roaming. Customers pay via bank transfers in other countries or at the port
of arrival. Prices are higher in Houthi-controlled areas, said one seller
who asked not be named for safety reasons. That's because telecoms are
controlled by the Houthis, who profit from the revenues, and have warned of
severe actions against those caught using Starlink.  Facebook and WhatsApp
groups offer the equipment regardless mdash; along with tips on how to
conceal the dish.

--With assistance from Fabiola Zerpa, Daniel Flatley, Mohammed Alamin,
Mohammed Hatem, Andreina Itriago Acosta, Nariman Gizitdinov, Ray Ndlovu,
Eric Johnson and Jake Rudnitsky.





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All the best,

Frank

Frantisek (Frank) Borsik



https://www.linkedin.com/in/frantisekborsik

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