Starlink Clears First Regulatory Hurdle, Gets Letter Of Intent From DoT

The government has given Elon Musk’s Starlink a conditional nod to operate satellite-based internet services in India.

Crossing the first major regulatory hurdle, the company received the Letter of Intent (LoI) from the Department of Telecommunications (DoT). However, this is not the final approval yet.

The LoI signals mutual commitment between the government and Starlink, but it comes with several conditions. Final clearance will only be granted once Starlink complies with all the licensing requirements and security protocols laid out by the DoT.

A Business Today report said that the DoT issued the LoI after Starlink accepted 29 strict security conditions, including requirements for real-time terminal tracking, mandatory local data processing, legal interception capabilities and localisation of at least 20% of its ground segment infrastructure within the first few years of operation.

The government initially proposed two conditions for Starlink, including need for mandatory Indian majority shareholding and prohibiting the use of user terminals near international borders.

These proposals were ultimately dropped after further review and industry feedback, the report added, noting that the majority shareholding condition conflicted with India’s current FDI policy, which allows up to 100% foreign ownership in the telecom sector under certain condition.

A separate Business Standard report said that Starlink needs to secure IN-SPACe clearance in record time if it wants to roll out signals alongside others.

The LoI comes as a milestone for Starlink as it will now be able to demo its services like Airtel-backed Eutelsat OneWeb, which has been providing its offerings to the defence sector under a pilot programme after getting the necessary regulatory approvals from IN-SPACe.

Starlink is Elon Musk’s satellite internet service that constitutes a constellation of over 7,000 Low Earth Orbit (LEO) satellites, a number expected to rise past 40,000 in the coming years.

Starlink’s satellites, unlike traditional geostationary satellite services, orbit closer to Earth (around 550km), significantly reducing latency and enabling services like HD video streaming, online gaming, and video conferencing even in remote areas.

Tightening Satcom Norms Amid Rising India-Pakistan Tensions

Earlier this week, the for satcom players.

These include requirements such as hosting critical network infrastructure within India, ensuring no signal spillover into neighbouring countries, particularly near border areas, ensuring data localisation, and granting the government the authority to intercept or block communication in cases of national security threats.

The development comes amid escalating tensions between India and Pakistan and heightened national security sensitivities. However, the BT report clarifies that the decision to approve Starlink was independent of these military developments.

Competitive Landscape:

While Starlink has cleared this initial regulatory hurdle, competitors like Amazon’s Project Kuiper are still awaiting similar permissions. Meanwhile, both Airtel (through Eutelsat OneWeb) and Jio Satellite Communications already own the Global Mobile Personal Communication by Satellite (GMPCS) license in India.

Once strong critics of the Musk-led venture, both Bharti Airtel and Reliance Industries Ltd to offer Starlink’s broadband internet services to its customers in India.

Even if Starlink becomes operational in India, its affordability remains a challenge. Industry reports suggests that Starlink’s monthly subscription prices could range between INR 3,000 and INR 7,000 subjective to plan and region.

On top of this, the one-time cost for Starlink’s user terminal kit, which includes a satellite dish and Wi-Fi router, is expected to fall between INR 20,000-35,000. A Jefferies report also underlined that for its services in India.

Union minister Chandra Sekhar Pemmasani, sidelining apprehensions around market disruption with the advent of Starlink, said that the company’s global user base remains small (under 5 Mn) and the technology is far more expensive and slower compared to traditional networks.

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