Why is the US blocking new deals for US-based satellite provider Mapei?
Posted On July 12, 2021
A deal for Mapea, a US-owned satellite services provider, is under review after a number of US government agencies stopped a number deals with the company.
The US State Department has blocked several new Mapean satellite deals that were signed with China and India, the New York Times reported on Tuesday.
The companies were selected to supply US satellite operators with communications and internet services.
The deals have raised questions over whether US companies are being unfairly favoured by the Obama administration.
Mapea is one of the largest providers of satellite communications services in the US.
The company has been at the centre of a dispute with the US government over whether it has the legal right to operate in the country.
The American government wants Mapeas satellites operated by American companies for national security reasons, but the company says it does not need to be US-operated.
It is also concerned that the US is refusing to grant licenses for US companies to operate satellite services.
Under a US law, it is a criminal offence to obtain a US licence for an American company to operate a satellite service in the United States.
But the US State Dept said Mapeans applications for licenses to operate satellites in the USA were being rejected.
“Mapei does not have an operational presence in the State of Texas,” it said.
“However, the company has submitted a number new applications for the authorization of satellite services to operate under a United States license, including those for a new satellite launch and services in Puerto Rico.”
It is a violation of law to obtain and operate a license under this law, and it would be inconsistent with our obligation under our law to allow Mapeia to operate.
“Mapeia said it has not been contacted by the US Department of State or the Department of Commerce.