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Billionaire Elon Musk’s Starlink could soon be the latest player in India’s telecom and internet market.
New Delhi has said that it will allocate satellite broadband spectrum administratively rather than through an auction
Billionaire Elon Musk’s Starlink could soon be the latest player in India’s telecom and internet market.
Starlink has been eyeing to enter the Indian market for years, and this month, New Delhi announced that it will allocate satellite broadband spectrum administratively rather than through an auction.
This is exactly what Musk wanted.
Starlink in India soon
Union Communications Minister Jyotiraditya Scindia stated on Tuesday that Starlink, which is owned by billionaire Elon Musk, will only be given a license to operate in India once all security-related standards have been met.
“We are more than happy to give them (license) if they (Starlink) comply with all the conditions. You have to look at it from a security perspective, making sure that all security concerns are addressed. When they do that we will be more than happy to give it. Obviously, they are in the process of doing it,” Scindia was quoted by PTI.
Another name for a satellite broadband services licence is a GMPCS licence.
In addition to submitting a first license application in October 2022, Starlink is collaborating with the Indian National Space Promotion and Authorisation Centre (IN-SPACe) to get further clearances.
The process of approval
Starlink is making an effort to comply with Indian regulations on servers, data storage, and security.
Starlink has previously been asked to provide clarifications on a number of key concerns by the Department of Telecommunications (DoT), according to The Times of India.
The regulatory body asked for information on the shareholding patterns and data storage practices, specifically concerning contracts or investments from US security agencies.
The company must also give comprehensive details regarding its geographic coverage in India, including precise latitude and longitude coordinates for terminals planned close to the border.
To avoid misuse, security procedures mandate that these terminals stop communicating if their geographic location changes.
Scindia stated that the Telecom Regulatory Authority of India (TRAI) would offer clarification on the crucial subject of satellite spectrum pricing.
Satellite internet companies and traditional telecom operators are at odds over the matter.
In accordance with International Telecommunications Union (ITU) regulations and international standards, Scindia had previously made it clear that spectrum for satellite broadband will be allocated administratively rather than through an auction. Musk has been an outspoken critic of the auction route as well.
“I cannot think of a single country that auctions spectrum for satellite,” he said in a recent interview.
According to Scindia, the matter has been placed on “Schedule 1” of the Telecom Act of 2023, which was passed in December.
This means that the Satcom spectrum will be distributed administratively.
Foreign satellite broadband companies like Starlink should find it easier to enter the market with this approach.
It would have been more expensive for Starlink to build out our services if the spectrum had been put up for auction.
In a positive response to this development, Musk wrote on X (previously Twitter) that it was “promising.”
Meanwhile, Musk charges as little as $10 (around Rs 800) a month for Starlink services in Africa.
The same Starlink service costs up to $120 (about Rs 10,000) a month in the US.
India is yet to introduce satellite broadband services because the government is awaiting TRAI recommendations on price and allocation strategies.
According to estimates, its Indian market is anticipated to grow swiftly, reaching USD 1.9 billion by 2030.
Starlink, a satellite network developed by Musk’s SpaceX, provides wireless internet service with the help of satellite constellations in near-Earth orbit.
It was developed with the aim of providing “low-cost internet to remote locations.”
The satellite has a lifespan of approximately five years. SpaceX eventually hopes to have as many as 42,000 satellites in this so-called mega constellation. As of September 2024, there are 6,426 Starlink satellites in orbit, of which 6,371 are working, according to Astronomer Jonathan McDowell, who tracks the constellation on his website.
Starlink’s arrival in India, meanwhile, comes as talks are taking place over Musk’s possible role in the administration of US President-elect Donald Trump, who has indicated that Musk could have an important role.
As Starlink looks to grow its satellite internet services abroad, especially in India, this link might increase its influence.
More details are expected to be revealed soon.