NEW DELHI, Oct. 8
The Indian government has rejected allegations of discriminatory treatment involving Elon Musk’s satellite internet company Starlink, maintaining that regulatory requirements for satellite communication services are governed by rules applicable to operators seeking to enter the Indian market.
The dispute concerns the regulatory framework for satellite-based broadband services, a sector attracting growing interest from international operators seeking to provide internet connectivity across India.
Starlink, operated by SpaceX, has been pursuing permission to offer satellite broadband services in the country. Its proposed entry is particularly relevant to remote and underserved regions where conventional fibre and mobile networks remain difficult or expensive to deploy.
The disagreement draws attention to how India intends to regulate satellite communications while balancing investment, competition, national security and the expansion of digital connectivity.
The Ministry of Communications said all three licensed satellite broadband operators — Starlink, Bharti-backed Eutelsat OneWeb and Reliance-backed Jio Satellite Communications — were at broadly the same regulatory stage and awaiting security assessments.
The ministry rejected Musk’s allegation that powerful business interests were obstructing Starlink’s entry into India.
In a post on X on Wednesday evening, Musk accused unnamed business interests of trying to preserve their control over India’s telecommunications market. He did not identify any company or individual or provide evidence supporting the allegation.
The ministry responded that preferential clearance for one operator would be inconsistent with India’s regulatory framework.
It said security assessments were underway for all three companies. Once completed, the operators would be eligible to proceed to the next stage of spectrum assignment.
Starlink has already secured permission from India’s space regulator, IN-SPACe, and obtained a Global Mobile Personal Communication by Satellite licence. However, it still requires security clearance and foreign investment approval before launching commercial services.
The company has invested in ground infrastructure in anticipation of entering the market.
Speaking at the India Mobile Congress on Wednesday, SpaceX vice-president for Starlink business operations Lauren Dreyer said the company had established more than 20 gateway sites in India, comprising hundreds of antennas.
Dreyer said Starlink had designed its Indian operations around domestic security requirements, including measures to retain Indian customer data within the country.
She also referred to the company’s partnerships with Bharti Airtel and Reliance Jio, as well as engagement with state governments, as part of its preparations for commercial operations.
Starlink’s entry would expand competition in a market where satellite broadband is expected to complement conventional telecommunications networks, particularly in remote and difficult terrain.
Satellite connectivity could provide an alternative in parts of the Himalayas, border districts, islands and sparsely populated areas where extending fibre networks or mobile infrastructure is commercially or geographically challenging.
However, the government is also seeking assurances that satellite systems can be subject to appropriate security controls during emergencies.
The regulatory process includes the allocation of satellite spectrum. The Department of Telecommunications has approved a proposed spectrum charge equivalent to 5 per cent of adjusted gross revenue, but the arrangement still requires Union Cabinet approval.
The outstanding approvals mean none of the three licensed operators has yet received the final clearance required to begin commercial services under the framework described by the ministry.
Jio is also developing its own low-Earth-orbit satellite constellation, while Amazon’s satellite broadband venture, Amazon Leo, is exploring entry into India.
The competition is therefore likely to involve both established Indian telecommunications groups and international satellite operators.
The dispute also highlights the distinction between regulatory permission and commercial readiness. Although Starlink says its infrastructure and operations are prepared, completing the licensing and security process remains a separate requirement.
For India, the challenge is to enable new satellite services without creating unequal regulatory treatment or weakening national security safeguards.
The government has not announced a timetable for completing the pending assessments or assigning spectrum. Until those decisions are made, Starlink, Eutelsat OneWeb and Jio Satellite Communications will remain unable to proceed with full commercial launches.
