Elon Musk’s Starlink moves closer to India licence, accepts data terms

Starlink, Elon Musk’s satellite broadband company, is advancing its licence application in India after agreeing to meet the government’s data localisation and security demands, according to a report by Moneycontrol. These requirements, previously a major hurdle, are seen as critical for Starlink’s entry into India’s satellite internet market.

With US President Donald Trump expressing interest in a key role for Musk in his administration, Starlink’s Indian ambitions may gain momentum. Musk’s support for Trump during the recent US Presidential elections, including fundraising efforts, could grant his satellite company added influence in regulatory matters as it seeks to establish its Low Earth Orbit (LEO) satellite internet services in India, the report said.

Progress with India’s Department of Telecommunications (DoT)
During recent discussions, Starlink reportedly agreed ‘in principle’ to comply with India’s security and data localisation policies, marking a significant step toward obtaining a Global Mobile Personal Communication by Satellite Services (GMPCS) licence. This licence is required for Starlink to provide satellite broadband in India, though the company has yet to formally submit its agreement.

The GMPCS licence will allow Starlink to apply for trial spectrum at a nominal fee, which is crucial for establishing its satellite network. Indian regulations require all satellite companies to store data within the country, and Starlink must demonstrate methods for secure data access by intelligence agencies if necessary.

In addition to the GMPCS application, Starlink’s proposal with the Indian National Space Promotion and Authorisation Centre (IN-SPACe) is advancing. IN-SPACe chairman Pawan Kumar Goenka recently confirmed that both Starlink and Amazon Kuiper are addressing queries raised for final approval, the report mentioned.

Awaiting Trai’s guidelines on spectrum allocation
As Starlink awaits regulatory clearance; the Telecom Regulatory Authority of India (Trai) is consulting stakeholders on methods for spectrum allocation and pricing for satellite services. Spectrum allocation rules are expected by December this year, setting the stage for Starlink and other satellite providers to begin operations.

Competition with local telecom operators
The entry of Starlink and other global satellite providers has intensified competition with Indian telecom giants, including Reliance Jio, Bharti Airtel, and Vodafone Idea. At a recent open-house meeting, local providers voiced concerns over spectrum allocation, advocating for an auction-based model to ensure fair competition in urban areas where satellite services would compete directly with terrestrial networks.

Starlink, however, argues that satellite and terrestrial networks differ fundamentally, and administrative spectrum allocation, not auction, would better support satellite communication. Starlink India Director Parnil Urdhwareshe said that if telecom companies can share 5G spectrum, satellite operators should similarly benefit from administrative spectrum allocation, the report said.

India’s space economy
As satellite services grow, India’s space economy is projected to reach $44 billion by 2033, up from its current 2 per cent global share to an estimated 8 per cent. Starlink’s entry could accelerate this growth, alongside emerging satellite players and expanding infrastructure, the report said. Business Standard