India’s Starlink launch hinges on security clearances, spectrum rules

India’s satellite internet market is awaiting further regulatory clearances for commercial services, as a dispute involving Elon Musk and Reliance Industries Chairman Mukesh Ambani draws attention to the entry of new players and the future of competition.

Starlink, operated by Musk’s SpaceX, has secured a telecommunications licence in India but still needs to meet security requirements and obtain spectrum assignment before launching commercial services. The Ministry of Communications recently said security assessments were under way for all three licensed satellite operators: Starlink, Jio Satellite Communications and Bharti-backed Eutelsat OneWeb.

Musk has alleged that powerful business interests are obstructing Starlink’s entry into India, singling out Ambani. However, no evidence has been presented to substantiate the allegations. Reliance has said it welcomes competition in satellite communications and noted that Jio’s own services are also awaiting clearances.

Communications Minister Jyotiraditya Scindia has indicated that a decision on satellite spectrum pricing is nearing completion, highlighting the distinction between government policy decisions and individual operators’ compliance requirements.

The market dynamics extend beyond competition between foreign and domestic companies. Bharti Airtel announced a partnership with SpaceX in March 2025, followed by a similar agreement from Reliance Jio a day later. Both arrangements were contingent on Starlink securing the necessary regulatory approvals.

Airtel said its partnership would explore distributing Starlink equipment through its retail network and connecting businesses, schools and healthcare facilities. Such arrangements could expand access while allowing companies to cooperate commercially despite competing interests.

For Indian consumers, the eventual cost and reliability of satellite broadband will be central to its adoption. While satellite connections could benefit households and businesses in remote areas with limited terrestrial connectivity, customers with reliable existing broadband may have little incentive to switch.

In mid-2025, the Telecom Regulatory Authority of India (TRAI) recommended spectrum charges equivalent to 4 per cent of adjusted gross revenue, along with an annual charge of Rs500 per urban subscriber for certain non-geostationary satellite broadband services. Rural and remote users would be exempt from the additional subscriber charge.

TRAI also proposed considering equipment subsidies for targeted users in underserved areas. However, the recommendations do not establish the final charges or the prices customers will pay.

TRAI recommended assigning spectrum within 30 days of an application, subject to in-principle network clearance, or communicating objections within that period. The proposal was not an unconditional deadline for approving Starlink.

Clear requirements, consistent treatment of operators and timely updates on outstanding approvals would improve transparency. Ultimately, the success of satellite broadband in India will depend on whether providers deliver reliable connections, competitive prices and meaningful alternatives for consumers.