Elon Musk’s Starlink has spent nearly five years preparing for the Indian market, securing key licences, building infrastructure and partnering with major telecom companies, but security clearances, FDI approval and the final spectrum framework continue to hold back its commercial launch

Elon Musk’s Starlink is ready to switch on its satellite internet service in India. The problem is that the company is still waiting for the regulatory green light.

The SpaceX subsidiary has secured a Global Mobile Personal Communication by Satellite (GMPCS) licence from the Department of Telecommunications (DoT), obtained authorisation from the Indian National Space Promotion and Authorisation Centre (IN-SPACe), built ground infrastructure and entered partnerships with Reliance Jio and Bharti Airtel.

Yet Starlink has not been able to begin commercial operations.

The remaining hurdles include security clearance, foreign direct investment (FDI) approval and the completion of the framework governing commercial spectrum assignment. The government has also said that all three licensed satellite communication operators are currently undergoing security assessments and are broadly at the same regulatory stage.

At the India Mobile Congress, Starlink Business Operations Vice-President Lauren Dreyer said the company had already invested in India and was ready to begin operations once the necessary approvals were completed. Starlink says it has built more than 20 gateway sites comprising hundreds of antennas and designed its Indian network around local security and data requirements.

The delay has now become a public dispute after Musk alleged that “certain oligarchs” were preventing Starlink from entering India. The government rejected the accusation and said its approval process was fair and non-discriminatory.

Starlink’s first setback came in 2021

Starlink’s Indian journey began with a regulatory setback.

In November 2021, the company started accepting pre-orders for its satellite broadband service in India before securing the necessary authorisations. The DoT subsequently warned consumers that Starlink was not authorised to provide satellite internet services in the country.

The government asked the company to stop accepting bookings and providing services until the required licences were obtained. Starlink eventually refunded customers who had placed pre-orders.

The episode highlighted one of the central challenges Starlink would face in India: the company’s global satellite network would have to operate within a tightly regulated telecommunications and national-security framework.

GMPCS licence finally arrived after years of waiting

Starlink formally entered the licensing process in November 2022.

After a prolonged regulatory review, the DoT issued a letter of intent in May 2025 and granted Starlink its GMPCS authorisation in June 2025.

The licence put Starlink alongside other satellite communication players seeking to operate in India, including Jio Satellite Communications and the Bharti-backed Eutelsat OneWeb.

But the GMPCS licence was only one part of the approval process.

Starlink also needed authorisation from IN-SPACe and access to spectrum before commercial services could begin.

IN-SPACe subsequently authorised Starlink’s Gen-1 constellation in July 2025, while provisional spectrum was made available for trials later that year. Security-related testing and regulatory discussions followed.

Security clearance remains the critical roadblock

The most complicated issue is national security.

India requires satellite communication providers to comply with rules covering lawful interception, data localisation and government control over network operations in situations involving national security or emergencies.

For Starlink, these requirements are particularly important because its network operates differently from traditional terrestrial telecom networks.

Starlink’s low-Earth-orbit constellation uses inter-satellite laser links that allow satellites to transfer data among themselves before connecting with ground infrastructure. Indian authorities have therefore examined whether domestic traffic can be appropriately monitored and controlled and whether Indian user data can remain within the country.

Starlink has said it has designed its Indian operations specifically around these requirements.

Dreyer said the company had established controls at multiple levels and would keep Indian user data within India. Starlink has also built more than 20 gateway sites as part of its Indian network architecture.

The security issue has gained additional importance because Starlink has been used in conflict zones, including Ukraine. Indian authorities have sought assurances that they would be able to control or restrict the service if circumstances involving national security required such action.

The government’s latest position, however, is that security assessment is not a Starlink-specific requirement.

According to the Communications Ministry, security assessments are currently underway for all three licensed satellite communication operators, and the companies will be able to move towards spectrum assignment after completing the required process.

FDI approval adds another layer of uncertainty

Starlink’s ownership structure has also been under scrutiny.

Starlink Satellite Communications is a wholly owned subsidiary of SpaceX, making its foreign ownership and investment structure an important part of the regulatory review.

India permits up to 100 per cent foreign investment in satellite services, subject to applicable routes and conditions. However, investments requiring government approval can take additional time, particularly where ownership, control and security considerations overlap.

Starlink’s FDI proposal remained pending earlier this year, and FDI clearance continues to be identified as one of the outstanding requirements before commercial operations can begin.

For Starlink, completing this process is important not only from a regulatory perspective but also because the company has already committed capital to its Indian infrastructure.

Spectrum policy has moved forward, but the final framework is not complete

Spectrum allocation has been another major point of debate.

Unlike traditional telecom operators, satellite broadband companies have pushed for administrative allocation of spectrum rather than auctions. Starlink has supported this approach, while terrestrial telecom operators have argued that satellite providers should not receive spectrum on terms that create an unfair competitive advantage.

India ultimately moved towards administrative allocation under the Telecommunications Act, 2023.

The remaining issue is the financial framework.

The DoT has approved a spectrum usage charge equivalent to 5 per cent of adjusted gross revenue (AGR), with provisions for lower charges for services in remote and rural areas. The proposal still requires final government approval before the commercial framework can be fully implemented.

Spectrum assignment and pricing therefore remain critical steps before satellite broadband companies can move from regulatory preparation to full commercial operations.

Starlink has already invested heavily in India

The delay has not stopped Starlink from building its Indian infrastructure.

The company says it has established more than 20 gateway sites containing hundreds of antennas. These facilities are designed to support communication between Starlink satellites and users on the ground while meeting India's regulatory and security requirements.

The investment indicates that Starlink views India as a long-term strategic market rather than a limited satellite connectivity opportunity.

India has one of the world's largest internet user bases, but traditional fibre and mobile networks remain more difficult and expensive to deploy in certain remote, mountainous, border and sparsely populated regions.

That is precisely where satellite broadband could have an advantage.

Jio and Airtel partnerships change the competitive equation

Starlink’s strategy has also evolved through partnerships with India’s largest telecom companies.

Reliance Jio entered into an agreement with SpaceX in March 2025 to bring Starlink services to customers in India, subject to regulatory approvals.

Bharti Airtel also signed an agreement with SpaceX.

The partnerships are significant because Jio and Bharti are not simply distribution partners. Both groups have strategic interests in satellite communications and broader connectivity infrastructure.

This creates an unusual competitive landscape in which major terrestrial telecom operators could simultaneously partner with and compete against satellite broadband providers.

For consumers, the combination could eventually make satellite connectivity available through established telecom distribution channels rather than requiring Starlink to build an entirely independent retail network.

Aadhaar and state-level preparations

Starlink has also been preparing its customer onboarding infrastructure.

In August 2025, the company was onboarded for Aadhaar authentication, allowing Aadhaar-based verification to be incorporated into its customer KYC process.

The company has additionally explored partnerships with state governments.

Gujarat signed a letter of intent with Starlink in February 2026 to explore satellite connectivity for remote, tribal and border areas, while Goa had earlier entered into an agreement with the company.

Potential applications extend beyond household broadband and include schools, healthcare facilities, government services, disaster management and connectivity in difficult-to-reach regions.

Musk’s ‘oligarchs’ accusation escalates the dispute

The regulatory delay took a more political turn after Musk publicly alleged that “certain oligarchs” were blocking Starlink’s entry into India to protect their market positions.

Musk did not identify any company or individual.

His comments came shortly after Dreyer said Starlink had completed substantial infrastructure investment and was waiting for the government to finish the approval process.

The Communications Ministry responded by saying India follows a “fair and non-discriminatory” authorisation framework.

The government said preferentially clearing one operator would be inconsistent with that framework and stressed that security assessments were underway for all three licensed satellite communication companies.

It also said the three operators were broadly at the same regulatory stage.

The exchange is important because it shifts the debate from a purely technical licensing issue to a broader question about how India intends to regulate foreign technology companies operating critical communications infrastructure.

India’s satellite broadband opportunity

Despite the regulatory delays, the potential market is significant.

Satellite broadband can complement fibre and mobile networks rather than necessarily replacing them. Its strongest proposition lies in areas where laying fibre or constructing terrestrial towers is economically difficult.

Remote villages, border regions, islands, disaster-hit areas, offshore facilities, mining locations and isolated industrial sites could become important markets.

Starlink also has the potential to support enterprise connectivity, backup communications and specialised government applications.

For India, the technology could help narrow the final-mile connectivity gap without requiring the same level of physical infrastructure investment in every location.

At the same time, satellite broadband is unlikely to disrupt India's mass-market telecom industry overnight. India already has some of the world's lowest mobile data prices and extensive 4G and 5G coverage. Starlink's proposition is therefore more likely to complement terrestrial networks in underserved areas than replace conventional mobile broadband.

Competition is only beginning

Starlink will not enter an empty market.

Jio Satellite Communications and Eutelsat OneWeb are also seeking to provide satellite communication services, while Amazon Leo is pursuing its own ambitions in the global satellite broadband market.

Jio is developing its own low-Earth-orbit satellite capabilities, while Bharti's involvement with Eutelsat gives the Indian telecom group exposure to another major satellite operator.

This means India could eventually become one of the world's most competitive satellite broadband markets.

The outcome will depend not only on technology but also on pricing, spectrum costs, terminal affordability, network performance, rural coverage and regulatory compliance.

What happens next for Starlink?

Starlink's commercial launch now depends on the completion of the remaining regulatory steps rather than the construction of its basic network.

The immediate milestones are security clearance, FDI approval, finalisation of the spectrum framework and subsequent spectrum assignment.

The government has made clear that these requirements apply across the satellite communications sector.

For Starlink, the challenge is therefore no longer simply reaching orbit. It is demonstrating that a global satellite network can operate within India's security, data and regulatory architecture.

The company says it is ready. The government says the process is moving forward under the same rules for all operators.

The next stage will determine whether Starlink becomes an early commercial entrant into India's satellite broadband market or whether regulatory delays allow domestic and international competitors to gain a stronger first-mover position.

Market Outlook

For investors, Starlink's India delay is more significant as a telecom and digital-infrastructure development than as a direct listed-company event.

A successful satellite broadband rollout could create opportunities across telecom infrastructure, satellite equipment, data connectivity, electronics manufacturing and enterprise digital services. Companies involved in network equipment, satellite communications and rural connectivity could eventually benefit from increased investment.

At the same time, terrestrial telecom operators such as Jio and Airtel could face a new competitive dynamic if satellite broadband expands beyond remote areas.

The key variables to watch are security clearances, FDI approval, spectrum assignment, the final spectrum usage charge and the commercial pricing of Starlink terminals and services.

India's satellite internet market is effectively ready from a technology and investment perspective. The remaining question is how quickly the regulatory system allows that market to switch on.