Top News

The Centre has reportedly withheld final clearances to Elon Musk-led satellite communication (satcom) operator Starlink over security concerns.

Sources told Bloomberg that the home ministry (MHA) effectively froze approvals after reports emerged that Starlink terminals were in use in Iran during the ongoing geopolitical tensions, despite not being licensed to operate in the West Asian nation. 

As per the report, the development appears to have heightened fears among officials about the Centre’s ability to control a US-based operator during geopolitical tensions. With this, Starlink appears to have been shut out of India, one of the world’s largest internet markets.

Indian authorities have reportedly sought clarification from Starlink on how it plans to guarantee compliance with local security mandates during geopolitical tensions, which could generate conflicting demands from foreign governments. 

Meanwhile, Starlink reportedly continues to engage with Indian authorities, submitting affidavits that it meets local data-storage requirements. As per the report, senior company executives also periodically met ministers and government officials to break the impasse. However, the MHA appears reluctant to grant the clearances till security concerns are resolved.

The scrutiny appears to extend beyond Starlink, with local authorities also reportedly adopting a more cautious stance towards other players in the satcom sector amid the Iran conflict. 

People familiar with the development said that the satcom joint ventures (JVs) of telcos Airtel and Reliance Jio were also being reviewed. However, the Centre is said to be viewing the arrangements of local players as relatively less problematic.

Meanwhile, the matter is said to have also stalled telecom department’s (DoT) plan to formulate the pricing for satcom spectrum. While the DoT has reportedly finalised the framework, it is yet to send it to the Union Cabinet for approval.

The development lands a tricky time for Starlink as its parent entity SpaceX is all set to list on the Nasdaq in the coming days, targeting a $1.7 Tn valuation. The delays in getting approvals in India could potentially spook investors and play a spoilsport for the IPO. 

It is pertinent to note that Starlink secured the Global Mobile Personal Communication by Satellite (GMPCS) license from the DoT last year. It subsequently also received authorisation from the Indian National Space Promotion and Authorisation Centre (IN-SPACe) to begin commercial operations in India through LEO satellites constellation. 

Previous reports suggested that Starlink is planning to set up 20 earth stations or gateways across Noida, Chennai, and Navi Mumbai. Reports estimate that the company, with its current capacity, can onboard up to 20 Lakh users in India, with the user terminal likely to cost around ₹33,000.

Amid all this, telecom operators have been lobbying for spectrum allocation for satcom services to happen through an auction. In contrast, Starlink has advocated for administrative allocation, which the government has largely sided with. 

The post Govt Withholds Starlink Clearances Over Security Concerns: Report appeared first on Inc42 Media.