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Elon Musk’s Starlink has formally accepted the key conditions set by the Indian government to obtain a license for launching satellite broadband services in the country, according to sources.
The company has agreed to comply with crucial security and data storage regulations, a mandatory requirement for licensing under the Department of Telecommunications (DoT).
Starlink Agrees to Security and Data Storage Norms
One of the primary conditions Starlink has accepted is the local storage of user data within India. Additionally, the company has assured that it will provide lawful interception access to intelligence agencies when required, aligning with national security protocols.
However, Starlink has also requested certain relaxations on some conditions, which it aims to fulfill progressively once its application is approved. The application is currently under review by the Ministry of Home Affairs and security agencies.
Despite Starlink’s compliance with the key requirements, the Indian government has maintained a strict stance, clarifying that it will not make exceptions for global players like Starlink and Amazon’s Kuiper.
The Telecom Regulatory Authority of India (TRAI) is working on finalizing the spectrum allocation and pricing framework for satellite services. Officials anticipate that satellite internet services will launch by the end of 2025.
As part of regulatory changes, TRAI has proposed merging the GMPCS (Global Mobile Personal Communications by Satellite) and VSAT (Very Small Aperture Terminal) licenses into a single authorization called “Satellite-based Telecommunication Service Authorization.”
Meanwhile, the DoT is finalizing network authorizations for satellite-based networks under the Telecom Act.
Telecom Operators Push for Auction-Based Spectrum Allocation
Leading Indian telecom providers, including Reliance Jio, have been lobbying for auction-based spectrum allocation for satellite services, arguing that satcom companies like Starlink could create unfair competition by offering broadband services in urban areas.
However, the Indian government remains firm on its decision to allocate spectrum through an administrative process, citing the technical nature of satellite services.
Starlink’s Pricing vs. Indian Telecom Plans
According to JM Financial, satellite internet services by Starlink and other satcom firms are significantly more expensive than traditional broadband services in India.
Starlink’s pricing: $10-$500 per month (₹800 – ₹41,000)
Indian broadband plans: Start from $5-$7 per month (₹400 – ₹600)
One-time Starlink hardware cost: $250-$380 (₹20,000 – ₹31,000)
Analysts at JM Financial state that satellite internet currently poses limited competition to Bharti Airtel and Jio’s home broadband business. This is because home broadband contributes only 6-10% of their EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
Additionally, Starlink and other satellite providers impose data caps and speed limitations, whereas Indian telecom giants offer unlimited data with higher speeds. For satellite broadband to compete in India’s price-sensitive market, pricing would need to drop significantly.
Amazon’s Kuiper Faces Delays in India
While Starlink has actively pursued licensing, Amazon’s Kuiper has been slow in its application process. The delay is primarily because Kuiper has yet to launch its satellite constellation, making it a less immediate competitor in the Indian market.
Despite this, industry analysts believe that Starlink and Kuiper could disrupt the Indian telecom market in the long run, particularly in rural and remote areas where traditional broadband infrastructure is limited.
With Starlink’s formal acceptance of security and data storage norms, India is moving closer to satellite-based internet services. However, pricing and regulatory challenges remain significant hurdles. The telecom industry continues to push for a fair competitive landscape, ensuring that satellite broadband services do not threaten the traditional broadband market.
As the spectrum allocation policy is finalized, all eyes are on how Starlink, Kuiper, and Indian telecom operators will shape the future of internet connectivity in India.
