Prime Highlights:

• Starlink has received a Letter of Intent (LoI) from India’s telecom ministry to provide satellite internet services.
• The clearance is conditional upon certain security and infrastructure requirements that Starlink will have to meet prior to launch.

Key Facts:

• The Department of Telecommunications (DoT) has given the green signal to Starlink after long-pending regulatory clearances.
• Starlink will have to keep customer data in India and not use ground stations from hostile neighboring nations.
• The corporation will also have to abide by India’s interception and security acts.

Key Background

Starlink, which is the internet satellite division of Elon Musk-owned SpaceX, has been trying to get into India for years now. It would like to deliver quick internet to rural and remote areas of the country where traditional broadband is in short supply yet. India with its vast geography and unserved area makes it an ideal market for such low-earth orbit (LEO) satellite-based products.

Following the first hitch on regulatory as well as national security grounds, Starlink has now secured a conditional green in the form of a Letter of Intent (LoI) from the Department of Telecommunications (DoT). But it comes with stern riders. Starlink would call for the establishment of a Network Operations Centre in India, geofencing of terminals (they will not function in prohibited areas), and not routing traffic via India’s border-sharing countries which have been said to pose a national security risk.

Besides, the company would also have to keep all Indian user data in India and meet lawful interception requirements—providing access to Indian intelligence agencies whenever required. The government has been slow in opening up foreign satellite internet services, particularly on data privacy and security issues.

Starlink has also partnered with Indian telecom operators like Reliance Jio, Bharti Airtel, and Vodafone Idea for future transactions. The Indian government’s move to allow administrative allocation of spectrum (compared to auction-based allocation) was a milestone in favor of Starlink to enter the market.

Although this has been a breakthrough, there are still issues. Pricing is a problem—Starlink is more expensive than traditional Indian broadband. The installation and equipment costs more as well. But for off-grid and digitally excluded neighborhoods, Starlink products could be a game-changer, making connectivity possible for education, healthcare, and small business.

With the conditional clearance, Starlink is now closer than ever before to offering its services in India. Its destiny will depend on how soon it can achieve compliance with the requirements of the DoT and install its infrastructure in the local market.