Starlink Complies with Government Terms to Secure India’s Satellite Broadband License | Starlink India Launch Soon?

Starlink Complies with Government Terms to Secure India’s Satellite Broadband License

Starlink has formally accepted key regulatory conditions set by the Indian government to secure a license for launching satellite broadband services in the country. According to sources, the company has agreed to comply with the government’s security and data storage requirements, including the mandate to store all user data within India and facilitate lawful interception by intelligence agencies when required. These conditions are a prerequisite for obtaining a license under the Department of Telecommunications (DoT).   

In a recent letter to the DoT, Starlink has also requested certain relaxations on some conditions, proposing a phased compliance approach once its application is approved. Currently, the Ministry of Home Affairs and security agencies are evaluating Starlink’s application, and the government has reiterated its stance that it will not ease regulatory norms for foreign players like Starlink and Amazon’s Kuiper. Following Starlink’s submission, no further clarifications have been sought by the authorities.   

Meanwhile, the Telecom Regulatory Authority of India (TRAI) is finalizing the methodology for spectrum allocation and pricing for satellite services, with officials expecting the commercial rollout of satellite-based broadband by the end of the year. TRAI has proposed merging the Global Mobile Personal Communications by Satellite (GMPCS) and Very Small Aperture Terminal (VSAT) licenses into a unified “Satellite-based Telecommunication Service Authorization.” This move is expected to streamline regulations for satellite operators.   

Telecom service providers in India, including Jio, have been advocating for a level playing field, arguing that satellite broadband providers could compete for urban subscribers. Jio has been particularly vocal about auctioning satellite spectrum, but the government remains firm on administratively allocating spectrum due to the technical nature of satellite communications.   

A report by JM Financial suggests that Starlink and other satellite internet providers are pricing their services between $10 to $500 per month, with an additional one-time hardware cost of $250 to $380. This pricing is significantly higher—around 7 to 18 times—than Indian telecom operators’ home broadband plans, which start at $5 to $7 per month (approximately ₹600). Analysts believe that satellite internet poses a limited threat to major telecom players like Bharti Airtel and Jio in the home broadband segment, which only contributes about 6-10% to their projected EBITDA and valuation by FY2030. Moreover, satellite services typically have data caps and lower speeds, whereas Indian telcos provide unlimited data at higher speeds.   

Amazon’s Kuiper, on the other hand, is progressing slowly in its India application due to its yet-to-be-launched satellite constellation. Industry experts believe that while satellite internet services by Starlink and Kuiper may not immediately disrupt telecom operators, they could pose a competitive threat in the long term as technology advances and pricing becomes more affordable. 

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