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Elon Musk's Starlink has reportedly received the Indian government's green signal to operate its satellite internet services in India. The US company has been waiting since 2022 for licenses to operate commercially in India. But New Delhi had delayed for reasons that include national security. According to the report of Moneycontrol, the Department of Telecom (DoT) issued the Letter of Intent (LoI) to Starklink. The report also stated that the company is yet to get the "final licence," which will be issued when the company fulfils all licence conditions.
In the meantime, a Washington Post report underlined that the Trump administration reportedly pressured countries facing the U.S tariffs to approve Elon Musk's Starlink. The U.S government's internal messages reveal that the State Department and the U.S. embassies are urging countries to clear regulatory hurdles for U.S. satellite companies a few times, even mentioning 'Starlink' by name. The report highlights how Starlink is used as a trade negotiation tool towards nations to secure trade deals with the U.S. Several countries, including India, have accelerated regulatory approvals for Starlink to ease tensions over US tariffs. From the tiny African country of Lesotho to other countries like Somalia, Congo, Pakistan, Bangladesh, Vietnam, and more, at least partially accommodate distribution deals with Starklink.
Starlink in India: A Breakdown of the Latest Policy Changes
The government of India agreed to exclude two proposed rules that Starlink had earlier refused to accept during discussions. The rules were requirements related to special monitoring zones near borders, and the compulsory majority Indian shareholding for satellite communication firms.
The government finally dropped these particular clauses from its final security guidelines. On border monitoring, the early proposal included 10 KM zones across and 50 KM zones within the international border. Starlink had reportedly asserted that it could not monitor users outside Indian territory. On the issue of the 10 KM "across border" rule, the Department of Telecommunication (DoT) has already removed it, citing its discrepancy with the Telegraph Act, but the 50 KM "within border" requirement still remains inside the new rules.
The majority Indian Shareholding rule that was proposed earlier was also removed, according to DoT, that foreign investment should be regulated under the existing Foreign Direct Investment (FDI) policy that allows up to 100% FDI in telecom, depending on certain circumstances, which Starlink had already agreed to meet. As the exclusion of these rules smoothed the road for Starlink to obtain its Global Mobile Personal Communication by Satellite (GMPCS) License.
Starlink's Table Unveiled
Expansion of Starlink internationally could generate multibillion-dollar revenue streams. According to Kimberly Siversen Burke, director of government affairs at Quilty Space, capturing just 1 percent of India's consumer broadband market could generate nearly $1 billion annually.
In the month of March, Starlink has already signed agreements with Indian telecom operators likeBharti Airtel, Vodafone Idea, and Reliance Jio. This would give the US company greater access to the world's most populous nation, India.
In India's Favour
SpaceX's satellite internet initiative, known as Starlink, aims to provide high-speed internet using a large constellation of satellites in low Earth orbit. Both Airtel and Jio have said that they want to capitalize on Starlink's technology to foster internet access in healthcare facilities, rural schools, and remote areas where legacy infrastructure is lacking.
When it launches in India, Starlink is expected to offer download speeds between 25 Mbps to 220 Mbps, and upload speeds from 5 Mbps to 20 Mbps. Latency is likely to fall between 25 to 50 milliseconds, which could be enough to support smooth streaming, gaming, and video calls.
Starlink could open opportunities for MSMEs, the backbone of the Indian economy. By providing better access in Tier 2/3 towns, which might bridge the digital gap, enabling participation in digital India initiatives, skilling platforms and cloud tools.
References:
The Washington Post: U.S. pushes nations facing tariffs to approve Musk’s Starlink, cables show
https://www.washingtonpost.com/business/2025/05/07/elon-musk-starlink-trump-tariffs/
Reuters: India agrees on conditional nod for Starlink operations in country, CNBC-TV18 reports
India Today: Elon Musk's Starlink reportedly gets approval to roll out its satellite internet services in India
Times of India: Elon Musk's Starlink secures 'crucial' approval to start its India operations