[Update] Elon Musk’s Starlink Gets DoT Licence To Operate In India

Update | June 19, 02:08 AM

Weeks after a report claimed that Elon Musk’s Starlink had received a licence from the telecom ministry, communications minister Jyotiraditya Scindia has confirmed the development. 

In a post on X, Scindia said that SpaceX president and chief operating officer (COO) Gwynne Shotwell “appreciated the licence” granted to Starlink. This came during a meeting between the minister and Shotwell, where they discussed opportunities for collaboration in the satcom space.

“Had a productive meeting with Ms. @Gwynne_Shotwell, President & COO of @SpaceX, on India’s next frontier in connectivity. We delved into opportunities for collaboration in satellite communications to power Digital India’s soaring ambitions and empower every citizen across the country… Ms. Shotwell appreciated the license granted to @Starlink, calling it a great start to the journey,” the post by Scindia read. 

Original | June 6, 04:21 PM

Elon Musk-led Starlink has received a key licence from the telecom ministry, paving the way for it to offer satellite communication services in India, Reuters reported.

With this, Starlink becomes the third satcom company after Eutelsat’s OneWeb and Reliance Jio to be granted the crucial licence.

The next steps for Starlink include obtaining approvals from the Indian space regulator IN-SPACe and securing spectrum allocation before it can begin commercial operations.

This comes after the company secured a conditional nod to operate satellite-based internet services in India, receiving a Letter of Intent (LoI) from the Department of Telecommunications (DoT). 

Starlink is Musk’s satellite internet service that constitutes a constellation of over 7,000 Low Earth Orbit (LEO) satellites, a number expected to rise past 40,000 in the coming years. 

Unlike traditional geostationary satellite services, which orbit at least 30,000 kilometres above the Earth, Starlink’s satellites orbit closer to Earth (around 550km), significantly reducing latency and enabling services like HD video streaming, online gaming and video conferencing even in remote areas. 

Its other competitors, like Amazon’s Project Kuiper, are still awaiting similar license.

Since it began operations in 2019, Starlink has changed internet connectivity around the world.

Back in 2021-2022, Starlink made an attempt to enter the Indian market by opening up pre-orders for its high-speed satellite internet services. The move attracted significant interest from Indian consumers, particularly those in underserved and remote regions.

However, Indian authorities stepped in and flagged that Starlink lacked the necessary regulatory approvals to operate in the country. The company was forced to refund customers and shelve its expansion plans.

While Indian telecom giants Bharti Airtel and Reliance Industries Ltd had long opposed Starlink’s entry in India, but later both inked deals with SpaceX to bring Starlink’s broadband services to their Indian customers. 

Starlink’s commercial viability in India still remains uncertain with pricing being a key concern. Industry estimates suggest that Starlink’s monthly subscription costs could range between INR 3,000 and INR 7,000, depending on the plan and region.

In addition, customers would have to bear a one-time cost of INR 20,000 to INR 35,000 for the user terminal kit, which includes a satellite dish and Wi-Fi router.

According to a Jefferies report, Starlink may also adopt a premium pricing model in India due to its limited bandwidth capacity, a move that could further restrict its accessibility in price-sensitive markets.

Meanwhile, regulatory complexities continue to evolve. The Telecom Regulatory Authority of India (TRAI) has proposed a five-year cap on satellite broadband permits, citing the need to evaluate the sector’s progress before allowing long-term commitments. 

Starlink, on the other hand, is lobbying for a 20-year license, pointing out the long gestation and capital-intensive nature of its operations.

Addressing concerns around potential market disruption, Union Minister Chandra Sekhar Pemmasani recently downplayed the impact of Starlink’s entry. 

He noted that the company’s global user base remains under 5 Mn and emphasised that satellite internet continues to be significantly more expensive and slower than traditional telecom networks.

To add another layer of scrutiny, the DoT introduced new security guidelines for satellite communication players last month, tightening compliance requirements for global firms entering the Indian market.