Tech Gaint Elon Musk’s Starlink is one step closer to launching its satellite internet service in India. The company has agreed to meet the key conditions set by the Indian government to obtain a license, according to sources.
Starlink Accepts Key Security Rules
To operate in India, Starlink must follow strict security and data storage rules. One of the main requirements is that all user data must be stored within India. The company has also agreed to provide intelligence agencies with lawful access to its network when needed, as per national security guidelines.
However, Starlink has asked for some flexibility on certain conditions, which it plans to meet gradually after securing the license. The Ministry of Home Affairs and other security agencies are currently reviewing its application.
No Special Treatment for Global Players
The Indian government has made it clear that no exceptions will be made for companies like Starlink or Amazon’s Kuiper. Meanwhile, the Telecom Regulatory Authority of India (TRAI) is finalizing rules on how spectrum will be allocated and priced for satellite services. Experts predict that satellite internet could roll out in India by the end of 2025.
As part of the new regulatory framework, TRAI has proposed merging two existing licenses--GMPCS (Global Mobile Personal Communications by Satellite) and VSAT (Very Small Aperture Terminal) into a single authorization called "Satellite-based Telecommunication Service Authorization." At the same time, the Department of Telecommunications (DoT) is finalizing how satellite networks will be licensed under the new Telecom Act.
Telecom Companies Push for Spectrum Auction
Major telecom providers like Reliance Jio are lobbying for spectrum allocation through an auction system. They argue that satellite companies like Starlink could disrupt the market by offering broadband in cities, creating unfair competition.
However, the Indian government prefers an administrative allocation process, citing technical reasons specific to satellite communication. How Starlink’s Pricing Compares to Indian Broadband
Satellite internet is much more expensive than traditional broadband in India. Here’s a price comparison based on data from JM Financial:
Starlink’s monthly cost: USD10 - USD500 (Rs.800 - Rs.41,000) Indian broadband plans: USD5 - USD7 (Rs.400 - Rs.600) per month Starlink’s one-time hardware cost: USD250 - USD380 (Rs.20,000 - Rs.31,000)Currently, Starlink is not seen as a major threat to companies like Jio and Airtel, as home broadband makes up only a small portion of their earnings. Moreover, Starlink has data caps and speed limits, whereas Indian telecom providers offer unlimited data at higher speeds. To compete in India’s price-sensitive market, satellite broadband prices would need to drop significantly.
Amazon’s Kuiper Faces Delays:
Unlike Starlink, Amazon’s Kuiper has been slow in applying for a license. One reason is that Kuiper has not yet launched its satellite constellation, making it less competitive in near future.
Despite these delays, analysts believe that both Starlink and Kuiper could play a major role in connecting rural and remote areas where traditional broadband services are limited.
With Starlink agreeing to India’s security and data rules, satellite internet services are getting closer to reality. However, pricing and regulatory challenges still need to be addressed. As the government finalizes its policies, the competition between Starlink, Kuiper, and Indian telecom providers will shape the future of internet access in India.