Starlink's application for a satellite broadband licence in India is progressing, with the company reportedly agreeing to meet the government's data localisation and security requirements. This marks a significant step toward securing a GMPCS licence, which is essential for offering satellite internet services in the country, Moneycontrol reported, citing sources aware of the matter.
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Data Localisation and Security Compliance
In recent discussions with the Department of Telecommunications (DoT), Starlink has reportedly committed, in principle, to complying with the guidelines, including storing all data within India. The company must also demonstrate how intelligence agencies can access data when necessary. However, Starlink has yet to formally submit an agreement confirming these commitments, the report said.
According to security guidelines, a satellite communications company operating in India must store all data within the country. This requirement is a prerequisite for the grant of licence by DoT.
White House Influence
The move comes as Starlink's parent company, led by Elon Musk, gains attention from US President-elect Donald Trump's administration. Musk's endorsement of Trump and fundraising efforts could potentially give Starlink more leverage in its dealings with Indian regulators. "His expected White House influence could give the LEO satellite company more leverage for its planned satellite internet operations in India, sources reportedly said.
Starlink has also applied for authorisation from the Indian National Space Promotion and Authorisation Centre (IN-SPACe), and additional details are being sought for final approval. The company's satellite broadband services in India will begin once the government finalises pricing and spectrum allocation rules, expected by the end of December after Trai's consultations.
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Starlink's Application with IN-SPACe
"Its application with IN-SPACe has also moved forward, with additional details requested for final approval," the report said.
The satellite broadband sector is facing stiff competition, particularly from Indian telecom companies like Reliance Jio, Bharti Airtel, and Vodafone Idea, who are concerned about the potential advantage international operators like Starlink and Amazon could have in urban markets. While Starlink argues that satellite and terrestrial communications are distinct, Indian providers stress the need for a level playing field, particularly in spectrum allocation.
Concerns Over Spectrum Allocation
According to the report, Telecom service providers asserted that only auctioned satellite spectrum should be used to serve urban or "retail" consumers. They argued that recent developments in satellite communications require the regulator to ensure a level playing field with terrestrial operators.
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Starlink addressed the demands by saying that telecom/terrestrial services and satellite communications (satcom) are fundamentally different and, therefore, should not be compared. Parnil Urdhwareshe, Director of Starlink India, reportedly informed the regulator that if 5G mobile spectrum can be shared among telecom companies, it should be allocated administratively rather than through an auction.
Space Economy and Market
IN-SPACe estimates that India's space economy could reach USD 44 billion by 2033, capturing approximately 8 percent of the global market share, up from around 2 percent currently.
