Elon Musk’s Starlink Gets Approval to Begin Satellite Internet Services in India

The Department of Telecommunications (DoT) has granted Starlink a Global Mobile Personal Communication by Satellite (GMPCS) licence, as per Indian Express reports. The company had applied for this nearly 3 years ago. Starlink is now the 3rd firm in India with such a licence, after Eutelsat’s OneWeb and Reliance Jio.

Starlink to Get Trial Spectrum

Reports suggest that Starlink is to receive trial spectrum in the coming weeks. Before starting commercial services, it must get clearance from In-SPACe, India’s space regulator. The company plans to set up 3 gateways in India and will also need to establish a local Network Operations Centre. As part of compliance, it must enable lawful interception and make sure the user traffic is not routed through foreign gateways.

Guidelines for Satcom Operators

DoT has issued new guidelines for satellite communication companies. These include:

• A phased manufacturing plan targeting 20% indigenisation of ground equipment within 5 years
• Use of India’s NavIC navigation system by 2029
• Data localisation requirements
• Real-time monitoring systems
• An undertaking not to copy or decrypt Indian telecom data outside India

Disagreements Over Spectrum Policy

The government opted for administrative allocation of spectrum for satellite services, rather than auctions. This decision followed debate between operators, Starlink supported administrative allocation, while Reliance Jio pushed for auctions. Shared satellite spectrum is technically difficult to auction, which influenced the government's decision.

Read More: Tesla Share Price Crashes Amid Escalating Feud Between Elon Musk and Donald Trump!

TRAI Pricing Under Review

The Telecom Regulatory Authority of India (TRAI) has recommended:

• 4% of adjusted gross revenue (AGR) as spectrum usage charges
• ₹500 per urban subscriber annually
• 8% of AGR as licence fee

As per news reports, Cellular Operators Association of India (COAI), which represents Reliance Jio, Bharti Airtel, and Vodafone Idea, has raised objections to this structure, saying it favours satellite firms over traditional telecom operators, who pay more under the auction model. 

COAI has asked the government to reconsider its pricing approach, stating that traditional telecom companies currently pay about 21% more in total to the government than satellite providers would under TRAI's proposed system, largely due to higher upfront spectrum auction fees.

Conclusion

Starlink’s licence approval clears a hurdle. Commercial services will begin once further regulatory and operational steps are completed. Other players like Amazon’s Kuiper are still waiting for approval to launch these services in India.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.