Starlink nears launch of satellite internet services in India amid regulatory debate

New Delhi: Elon Musk’s satellite venture, Starlink, is set to become the third company licensed to provide satellite-based internet services in India. The company has received a Letter of Intent (LoI) from the Department of Telecommunications (DoT) for a Global Mobile Personal Communication by Satellite (GMPCS) licence, and is awaiting final clearance, according to Union Minister of Communications Jyotiraditya Scindia.

“At present, OneWeb and Reliance are the two companies that hold licences for satellite-based internet services,” Scindia said. “Starlink is also nearing the end of the licensing process. With the LoI already in place, I expect the company to be granted its licence shortly.”

Once operational, Starlink will join Bharti-backed OneWeb and Reliance Jio’s satellite arm in the satellite broadband space. The service is expected to support internet access in remote and underserved regions, aligning with broader government aims to promote digital inclusion.

In addition to the LoI, Starlink is reportedly in the process of securing final approval from the Indian National Space Promotion and Authorisation Centre (IN-SPACe). Following this, the Telecom Regulatory Authority of India (TRAI) is expected to formalise the regulatory framework for allocating satellite spectrum for commercial use.

The entry of satellite broadband players has sparked concerns among existing telecom operators. Industry stakeholders argue that proposed spectrum pricing for satellite operators could distort market competition. Specifically, the Cellular Operators Association of India (COAI) has raised objections to TRAI’s recommendations on spectrum pricing.

In a letter to the DoT, the COAI described the suggested pricing structure as “unjustifiably low” and claimed it undermines fair competition.

“The recommendations provide a regulatory advantage to commercial NGSO (non-geostationary earth orbit) satellites against terrestrial broadband service providers and, if accepted by DoT in their present form, will undermine competition,” the letter stated.

TRAI has recommended satellite communication spectrum be assigned for a five-year period, with operators required to pay 4% of their adjusted gross revenue (AGR). While the measure aims to encourage global satellite internet providers to enter the Indian market, it has been met with resistance from major players such as Reliance Jio and Bharti Airtel, who have criticised the proposal.