Musk's Starlink gets licence to offer satellite internet services in India

GMPCS licence awarded a month after Starlink received Letter of Intent from the Department of Telecommunications

Elon Musk-promoted Starlink, the world’s largest space-based communication company, has got licence to operate in India, more than two years after it filed an application. The satellite broadband licence for the American major, which has a presence in over 125 countries, has come at a time when the industry stands divided over the issue of spectrum pricing and the method of allocation of airwaves.

 

Starlink’s entry into India is likely to make satellite broadband a highly competitive space, according to analysts. Officially joining Eutelsat OneWeb, backed by Sunil Bharti Mittal’s Airtel, and Mukesh Ambani-led Jio Satellite Communications Ltd in the satcom race, Starlink can now begin marketing its subscriptions in India and open registration for the service, officials said. Earlier this year, in a surprising move, rivals Airtel and Jio had entered a partnership with Musk’s SpaceX to distribute Starlink’s equipment and services at their own retail stores, to their own customers. However, existing telcos like Airtel and Jio remain opposed to Starlink’s view on how spectrum should be allocated.

 

Telcos had recently written to the Department of Telecommunications (DoT) opposing the recommendations of the Telecom Regulatory Authority of India (Trai) on administered allocation of spectrum (as against auction in case of terrestrial players) to satellite broadband firms at a price of 4 per cent of the adjusted gross revenue (AGR). This, they said, went against the theory of level playing field. Both the DoT and Trai rejected the argument.

 

Starlink has been given a licence for global mobile personal communication by satellite (GMPCS) services exactly a month after the letter of intent  was issued, officials said.  

 

The company can now apply for a trial spectrum to test out its technology. It is expected to receive the necessary spectrum within 15 to 20 days of its application. It was not immediately clear if Starlink had received the final nod from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

 

Amazon's Project Kuiper remains the only major satcom contender still awaiting a go-ahead from the government.

 

Starlink provides satcom services in over 125 countries through a constellation of over 7,600 low earth orbit (LEO) satellites operated by SpaceX — the American spacecraft manufacturer, launch service provider, and satcom company owned by Musk.

 

In April, the satcom operator had received provisional registration from Pakistan’s space regulator, with Islamabad stating on record that it hoped Starlink would receive full clearance and begin operations by the end of 2025. In May, Bangladeshi telecom authorities granted necessary licences for Starlink to operate in the country. Bhutan had been the first country in the subcontinent to get Starlink connectivity in February.

 

Currently the largest space-based communications network, Starlink has increasingly targeted developing and low-income countries. For instance, it went live in the Democratic Republic of the Congo earlier this week.

 

Surge in action

 

Starlink’s application for a GMPCS licence had remained under processing since November 2022. It had been held up due to the company’s inability to comply with mandatory ownership disclosure norms overseen by the Department for Promotion of Industry and Internal Trade (DPIIT). Additionally, Starlink had also clashed with the government over rules that a licensee must provide call data records to security agencies upon request and turn off services at times of crises under government direction.

 

With the DoT bringing in a range of tighter security conditions for satcom in India last month, analysts had initially written off Starlink’s chances of securing permissions anytime soon. From securing separate security clearance for each satellite gateway in India, localisation of all lawful interception facilities, and special provisions that mandate services to specific individuals, groups or geographical areas during hostilities, the security conditions increased the regulatory burden on industry.

 

But soon after, Starlink was granted the LoI, with the company promising to meet all the conditions in the latest directive. Following that, Trai released its recommendations on the pricing and allocation guidelines for satellite spectrum in India.