Elon Musk Backed Starlink’s India Debut on Hold Over Security Compliance

The commercial launch of satellite communication services in India remains pending as government authorities require full security compliance and clarity on spectrum pricing before granting final approvals to operators. 

Security Compliance and Spectrum Allocation 

As per news reports, Union telecom minister Jyotiraditya Scindia said satellite broadband services will be permitted only after companies meet security conditions laid down by agencies.  

Operators such as Starlink, Eutelsat One and Jio SGS are awaiting spectrum allocation once pricing is finalised by the Department of Telecom. 

Scindia said licence holders including OneWeb, Reliance Jio and Starlink must comply with requirements linked to international gateways and data localisation.  

Provisional spectrum has already been provided to test their ability to meet these conditions, and companies are currently in the process of doing so. 

Regulatory Differences on Satcom Pricing 

Spectrum pricing is being examined jointly by the Department of Telecom and the Telecom Regulatory Authority of India. Differences remain between the two bodies on multiple aspects of satellite spectrum allocation.  

Earlier this month, TRAI rejected several DoT proposals, including a higher annual spectrum fee of 5% instead of 4% and the removal of a ₹500 per-connection charge in urban areas. 

The DoT is expected to place its position before the Digital Communication Commission, which will determine the next steps and may seek Cabinet approval on the final pricing framework. 

Vodafone Idea Relief Under Review 

Separately, Scindia said discussions are ongoing within the Department of Telecommunications on relief sought by Vodafone Idea. The company has told the government that its total liabilities are around ₹2 lakh crore, including ₹1.19 lakh crore in spectrum dues.  

Vodafone Idea has warned that without support, the Centre could face losses due to unrecovered dues and erosion of equity value estimated at ₹53,083 crore. 

The government currently holds a 49% equity stake in Vodafone Idea following conversion of dues worth about ₹37,000 crore. Scindia clarified that no direct relief has been granted so far.  

The operator is required to pay around ₹18,000 crore by March 2026 and a similar amount annually for the following 6 years, despite generating operational cash of ₹8,400–9,200 crore annually over the past three years. 

Read More: TRAI Rolls Out CNAP: Built-in Caller Identification Arrives for Every Indian Mobile User! 

Conclusion 

While satellite broadband players await final clearance, India’s satcom rollout hinges on security compliance and a settled pricing regime. At the same time, policy decisions on Vodafone Idea will be crucial for sustaining competition in the telecom sector. 

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