Elon Musk's Starlink agrees to security norms, licence application back on track

Trump and Musk

Starlink's India licence application is set to move forward after the Elon Musk-led satellite broadband company agreed to meet the government's data localisation and security requirements, a major point of contention, sources have told Moneycontrol.

The development comes as US president-elect Donald Trump has talked about a big role for the tech billionaire in his administration. In the run-up to the polls, Musk not only endorsed the former president but also raised funds for his campaign. His expected White House influence could give the LEO satellite company more leverage for its planned satellite internet operations in India, sources said.

In recent meetings with the department of telecommunication (DoT), Starlink "in principle" committed to complying with these guidelines, a critical step towards securing a satellite broadband services licence or GMPCS licence, they said.

Starlink, however, is yet to submit its agreement on meeting the conditions.

A Moneycontrol email to Starlink India for its response remained unanswered.

The Global Mobile Personal Communication by Satellite Services (GMPCS) licence is the first step towards setting up a satellite internet by acquiring a trial spectrum at a nominal application fee.

According to security guidelines, a satellite communications company operating in India must store all data within the country. This requirement is a prerequisite for the grant of licence by DoT.

Starlink may need to show how intelligence agencies can intercept data if necessary, sources said.

Licence to connect

In October 2022, Starlink for a GMPCS licence. It then applied for authorisation from the Indian National Space Promotion and Authorization Centre (IN-SPACe), the space regulator.

Its application with IN-SPACe has also moved forward, with additional details requested for final approval.

In an interview to Moneycontrol last week, IN-SPACe chairman Pawan Kumar Goenka confirmed seeking details from Starlink and Amazon Kuiper, "... that's what we are working on and are in the pipeline. We have raised some queries, and they are being answered."

Starlink has reached an in-principle agreement to fulfil security conditions, even as the Telecom Regulatory Authority of India (Trai) consults stakeholders to finalise the methodology for allocating and pricing spectrum for satellite services.

Satellite broadband services in India will commence once the government establishes pricing and spectrum allocation rules. This process can only begin after Trai releases its recommendations, which are expected to be finalised by the end of December.

Sat wars

A fierce battle is underway between Indian private telecom operators — Reliance Jio, Bharti Airtel, and Vodafone Idea — and global satellite communication players, including Starlink and Amazon.

The method of allocation and pricing of satellite spectrum, which is essential for providing broadband services from space, is at the core of the clash.

Last week, during an open house session, representatives from all three Indian private telecom companies emphasised the need for a level playing field. They expressed concerns about Starlink, Amazon, and other global satellite operators that plan to offer satellite broadband services in urban areas, as these companies would directly compete with local providers.

Telecom service providers asserted that only auctioned satellite spectrum should be used to serve urban or “retail” consumers. They argued that recent developments in satellite communications require the regulator to ensure a level playing field with terrestrial operators.

Starlink responded to the demands by saying that telecom/terrestrial services and satellite communications (satcom) are fundamentally different and, therefore, should not be compared. Parnil Urdhwareshe, the director of Starlink India, told the regulator that if 5G mobile spectrum could be shared among telecom companies, it should be allocated administratively rather than through an auction.

IN-SPACe estimates that the country’s space economy has the potential to scale $44 billion by 2033, accounting for about 8 percent of the global share from around 2 percent currently.

Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.