Elon Musk’s Starlink gets the final clearance to satellite internet services in India | Company Business News-OxBig News Network

Elon Musk-owned Starlink has cleared the last regulatory hurdle to begin offering satellite-based internet in India.

The company has received authorization from the Indian National Space Promotion & Authorization Centre, or IN-SPACe, for its Gen 1 constellation capacity over India, showed the space regulator’s website.

The authorization has been given for five years till 7 July 2030.

Of around 6,750 satellites, Starlink has over 4,000 first-generation satellites, according to NewSpace Index.

“Starlink was given the approval after following the necessary process and performing all the checks,” an official said on the condition of anonymity.

Jio Platforms’ joint venture partner, Luxembourg-based SES, has also secured authorization for a total of 24 satellites over India, the In-SPACe website showed.

IN-SPACe, under the space department, oversees space activities in the country, particularly by private players.

With this approval, Starlink has joined Eutelsat OneWeb and Jio-SES joint venture in getting all the required approvals to launch satellite internet services in the country. Amazon’s Kuiper is also seeking to enter the country and is awaiting the government’s approval of its application.

The licence for Starlink comes as India looks to close a bilateral trade deal with the US to avoid a potential 26% reciprocal tariff.

Interestingly, Musk announced his exit from US President Donald Trump’s administration on 29 May and stepped down as head of the Department of Government Efficiency (DOGE).

Commercial launch is still away

Starlink will now need to set up earth station gateways, ground-based facilities that connect satellites to local networks, a critical component of internet connectivity.

However, the commercial launch will have to wait as the government has yet to allocate spectrum to these entities.

The Telecom Regulatory Authority of India (Trai) has recommended administrative allocation of spectrum, as opposed to auctions, for satellite internet services. It said satcom companies would have to pay annual spectrum charges of either 4% of their adjusted gross revenue (AGR) or ₹3,500 per MHz, whichever is higher.

The recommendations are pending with the department of telecommunications (DoT), and the Centre is expected to notify the terms and pricing for spectrum allotment soon.

Satcom operators will also have to pay an annual licence fee of 8% of AGR as per the DoT’s current authorization terms. This is similar to what telecom operators pay, which includes a 5% licence fee and 3% towards the Universal Service Obligation Fund (USOF).

Additionally, Trai has recommended an annual charge of ₹500 per subscriber for satellite service providers in urban areas.

The long wait

The approval for Starlink has come a month after it received a crucial licence from the DoT.

On 6 June, the DoT granted Starlink the critical Global Mobile Personal Communications by Satellite (GMPCS) licence, marking a major milestone in its entry into the Indian market, after a three-year wait.

The GMPCS licence allows companies to offer voice and data services through satellite. The licence is issued for 20 years and allows companies to offer satellite communication services in licensed service areas.

Starlink applied for a GMPCS licence in 2022. It started taking bookings for its satellite-based services from Indian customers in 2021 without even getting the license. The government then directed it to call off such bookings as they could not be done without a licence. In compliance with the DoT order, it returned the booking amounts to over 5,000 pre-booked customers.

Starlink has also received internet services provider (ISP) and very small aperture terminal (VSAT) licences from the government.

Mint was the first to report on 7 May that Starlink got the letter of intent after agreeing to comply with licensing conditions critical to national security.

“The company will next be given the trial spectrum to test its services and show compliance with the security norms,” the second government official said.

The Centre has allotted provisional spectrum to OneWeb and Jio as well to comply with the security norms, including lawful interception, network control and monitoring, geofencing of services and data localization.

Compliance with conditions is essential for companies before starting satellite internet services commercially.

On 20 June, Mint reported the Centre has extended the trial spectrum usage period for satellite internet providers such as Bharti Enterprises-backed Eutelsat OneWeb and Jio Satellite by another six months, until November, offering them crucial breathing space to comply with India’s stringent security requirements.