Elon Musk’s Starlink has finally received a major boost from the Indian government, moving a step closer to launching its satellite internet services in the country. After nearly three years of regulatory hurdles, the Department of Telecommunications (DoT) has issued a Letter of Intent (LoI) to Starlink, setting the stage for the grant of Global Mobile Personal Communication by Satellite (GMPCS), VSAT, and ISP licences. The final licences will be awarded once Starlink fulfills all compliance requirements under India’s revised satcom guidelines, including national security, infrastructure, and data regulations.
Regulatory Approval Marks a Milestone for Starlink in India
This regulatory nod signifies a turning point in India’s broadband landscape. Starlink, which operates the world’s largest satellite constellation with approximately 7,000 satellites, aims to bring high-speed internet access to underserved and remote parts of the country. The issuance of the LoI followed Starlink’s formal commitment to meet all licensing and security conditions outlined in the newly updated satcom policy framework. This includes data localisation, gateway establishment, security clearance, and long-term commitments to infrastructure development. Approval from IN-SPACe, India’s space authorisation body, is expected shortly, which will further pave the way for Starlink’s commercial operations.
Strategic Partnerships and Rural Connectivity Goals
To support the rollout, Starlink has signed strategic distribution agreements with telecom majors Reliance Jio and Bharti Airtel. Under these partnerships, the telecom companies will handle the retail distribution of Starlink kits, customer support, and installations. This collaboration will be essential for reaching India’s rural and geographically challenging areas, where terrestrial broadband infrastructure is difficult to deploy or economically unviable. The focus is not on competing with urban broadband but on extending connectivity to the digital shadows of India—villages, forested regions, and high-altitude hamlets that have long remained disconnected from the national digital mainstream.
Compliance with India’s Revised Satcom Regulations
The Indian government recently unveiled a new framework to regulate satellite communication services more stringently. According to the latest guidelines, all satcom operators must ensure local data storage, establish domestic DNS resolution infrastructure, and avoid routing any user traffic through gateways outside Indian territory. Starlink, like others, is now required to establish data centres within India and integrate the country’s indigenous NavIC satellite navigation system into its user terminals by 2029. Additionally, companies will need to submit phased local manufacturing plans, with a target to achieve at least 20% indigenisation of their ground systems within five years of starting commercial operations.
Security remains a top priority. Companies must ensure real-time monitoring, agree not to copy or decrypt Indian telecom data outside India, and implement mechanisms for lawful interception. Any voice or data service will need to be cleared from a national security standpoint. Restrictions can also be placed during periods of hostilities or unrest, underlining the strategic oversight embedded in India’s satellite internet framework.
Challenges Ahead: Pricing and Competitive Landscape
While Starlink’s entry could reshape digital access in remote areas, affordability remains a significant concern. Industry analysts warn that Starlink’s broadband services may be 10 to 14 times more expensive than existing fibre or mobile broadband options offered by local providers like Jio and Airtel. This raises questions about the economic viability for price-sensitive rural consumers. However, Minister of State for Communications Chandra Sekhar Pemmasani clarified that Starlink’s presence should not be seen as a threat to existing market players. Instead, the aim is to fill critical connectivity gaps, not to disrupt urban broadband markets.
The satellite internet sector in India is becoming increasingly competitive. Apart from Starlink, players like OneWeb, Eutelsat, and the Jio-SES joint venture are already moving forward with their service frameworks. Amazon’s Project Kuiper, another major contender in the global satcom space, is still awaiting its LoI. The upcoming spectrum pricing guidelines from the Telecom Regulatory Authority of India (TRAI) are expected to further accelerate deployments and may play a key role in determining commercial viability across the sector.
Last month, Prime Minister Narendra Modi engaged directly with Elon Musk to discuss the future of innovation and connectivity. Starlink executives also met Commerce Minister Piyush Goyal to push for faster regulatory clearances. These interactions appear to have borne fruit, with the LoI marking a formal step toward active service launch in India.
As Starlink gears up for deployment, it represents more than just a commercial opportunity. It is a bold experiment in using space-based infrastructure to solve one of India’s most persistent development challenges—last-mile digital connectivity. If executed well, it could redefine how India connects its most isolated communities to the broader digital world.
