Starlink's India entry: Why Musk's satellite internet launch is stalled

Elon Musk's Starlink has spent nearly five years preparing to enter India, securing key licences and building infrastructure, but its commercial satellite internet service is yet to launch

Elon Musk-backed Starlink has spent nearly five years preparing to enter the Indian market, but its commercial satellite internet service is yet to commence operations.

 

The SpaceX subsidiary has secured its Global Mobile Personal Communication by Satellite (GMPCS) licence from the Department of Telecommunications (DoT), received authorisation from the Indian National Space Promotion and Authorisation Centre (IN-SPACe), built ground infrastructure and entered partnerships with Reliance Jio and Bharti Airtel.

 

Yet, Starlink is waiting for some of the final approvals needed to start commercial services. These include security clearance and foreign direct investment (FDI) approval, while the government is also working on the final framework for commercial spectrum allocation.

  

At the India Mobile Congress on Wednesday, Starlink Vice-President of Business Operations Lauren Dreyer said the company was ready to begin operations once it received the government’s approval. She said Starlink had built its Indian operations around the country’s security and regulatory requirements.

 

Here are the key hurdles Starlink has faced in India so far.

 

Starlink’s first setback came in 2021

 

Starlink’s first attempt to enter India ran into trouble even before it had obtained a licence.

 

In November 2021, the company started pre-selling its satellite internet service in India. The Department of Telecommunications warned customers that Starlink was not authorised to provide satellite-based internet services in the country and asked the company to stop booking or providing the service until it obtained the required licences. 

 

The government said Starlink had not obtained the necessary authorisation and advised the public not to subscribe to the service. Starlink subsequently refunded thousands of pre-orders.

 

GMPCS licence came after a long wait

 

Starlink later entered the formal licensing process. Its application for a GMPCS licence was under consideration from November 2022.

 

The DoT issued a letter of intent to Starlink in May 2025 and granted it a GMPCS authorisation in June that year. The licence placed Starlink alongside Jio Satellite Communications and OneWeb India Communications among the companies authorised to offer satellite communication services in India.

 

However, the licence itself was not enough to start commercial services. Starlink also needed authorisation from IN-SPACe, the space-sector regulator, and spectrum to provide satellite broadband services commercially.

 

IN-SPACe cleared Starlink’s Gen-1 constellation in July 2025. The company subsequently received provisional spectrum for trials in September 2025 and began security-related testing.

 

Security clearance remains the biggest hurdle

 

National security requirements have emerged as one of the biggest challenges for Starlink.

 

India requires satellite operators to ensure that traffic generated by Indian users can be monitored and controlled within the country. The licensing conditions include requirements for lawful interception, data localisation and the ability to restrict services in specific areas or to specific users during emergencies.

 

Government officials earlier told Business Standard that Starlink’s global network architecture makes compliance particularly complex because the constellation is not designed around national borders.

 

Starlink’s satellites can communicate with one another through inter-satellite laser links. This allows data to travel between satellites before reaching a ground station. Indian authorities have therefore examined whether such links could allow Indian traffic to bypass domestic gateways.

 

The government has also sought assurances that it can exercise control over Starlink’s network during an emergency or conflict.

 

This concern is partly linked to Starlink’s use in conflict zones, including Ukraine. Business Standard had earlier reported that officials were examining whether India would be able to direct the company to restrict or stop services when required.

 

FDI approval is another pending issue

 

Starlink Satellite Communications is a wholly owned subsidiary of SpaceX, making its ownership structure another area of scrutiny.

 

India allows up to 100 per cent FDI in satellite services. However, foreign investment beyond the automatic route requires government approval, and companies must also comply with ownership-disclosure requirements.

 

In May this year, Starlink’s FDI proposal was still pending, with officials raising questions about the company’s structure. As of October 8, FDI approval remained among the clearances awaited by Starlink.

 

Spectrum allocation and pricing are still being finalised

 

Spectrum has been another important issue in India’s satellite broadband policy. Starlink had backed administrative allocation of satellite spectrum instead of an auction. Reliance Jio, meanwhile, argued that satellite companies should not receive spectrum on terms that put them at an advantage over terrestrial telecom operators.

 

The government eventually adopted the administrative allocation route under the Telecommunications Act, 2023, broadly in line with Starlink’s position.

 

However, the question of how much satellite operators should pay for the spectrum has taken longer to settle. The Department of Telecommunications has backed a spectrum usage charge of 5 per cent of adjusted gross revenue (AGR), with an incentive for operators providing connectivity in remote areas. As of October 8, this 5 per cent charge was still awaiting Union Cabinet approval.

 

Commercial services therefore cannot begin until the broader spectrum framework and assignment process are completed.

 

Starlink has already built infrastructure in India

 

Despite the delays, Starlink has continued preparing for its launch. Dreyer said on Wednesday that the company had established 20 gateway sites with hundreds of antennas in India. She said Starlink had also created India-specific controls to meet the country’s security requirements and keep Indian user data within India.

 

The company had earlier planned gateway sites in cities including Mumbai, Pune and Indore, followed by other locations.

 

Jio and Airtel have become Starlink partners

 

Starlink’s relationship with Indian telecom companies has also changed significantly.

 

In March 2025, Reliance Jio signed an agreement with SpaceX to bring Starlink services to its customers in India, subject to regulatory approvals. Bharti Airtel also entered into a similar agreement with SpaceX.

 

The partnerships are notable because both companies also have interests in the satellite communications market. Jio is developing its own satellite communication capabilities, while Bharti is associated with Eutelsat OneWeb.

 

Aadhaar and state government tie-ups

 

Starlink has also been preparing its customer onboarding system.

 

In August 2025, the Unique Identification Authority of India (UIDAI) onboarded Starlink for Aadhaar authentication, allowing the company to use Aadhaar-based verification for customer KYC.

 

The company has also been engaging with state governments. Gujarat signed a letter of intent with Starlink in February 2026 to explore satellite connectivity in remote, tribal and border areas. Goa had earlier signed an agreement with the company.

 

These arrangements cover possible applications in areas such as schools, health centres, government services, disaster management and remote connectivity.

 

Musk blames ‘oligarchs’

 

On Wednesday, Musk alleged that “certain oligarchs” were blocking Starlink’s India entry to protect their market position. He did not name any company or individual.

 

Following this, India’s communications ministry on Thursday said it follows a “fair and non-discriminatory” authorisation process for all telecom services, including satellite communications. It said giving preferential clearance to any one operator would not be in line with this regulatory framework.

 

In a statement, the ministry said security checks were part of the approval process and were currently being carried out for all three licensees. After the security assessment is completed, the companies can move to the next stage of spectrum assignment.