New Delhi: Elon Musk’s Starlink has reportedly secured a crucial regulatory clearance in India, receiving a Letter of Intent (LoI) from the Department of Telecommunications (DoT) to offer satellite internet services.

As per Moneycontrol, Starlink is set to be awarded GMPCS, VSAT, and ISP licences, contingent on fulfilling all national security and infrastructure obligations.

A government official told Moneycontrol, “The LoI came after Starlink gave an undertaking to meet licence conditions and security protocols under the new revised guidelines… the final licence will be issued once all conditions are met.”

Security protocols and infrastructure commitments

The LoI aligns with the Centre’s tightened norms for satellite internet providers, now mandating data localisation, lawful interception capabilities, gateway security clearance, and local equipment manufacturing.

Starlink must also establish earth station gateways—crucial to bridging satellites and ground networks—prior to commercial launch. Approval from IN-SPACe, India’s space regulator, is anticipated soon.

Distribution partners and rural rollout

To support deployment, Starlink has partnered with Reliance Jio and Bharti Airtel for kit distribution, installations, and customer service.

The initial focus will be on remote and rural areas where traditional fibre and mobile networks face access issues.

Cost concerns may hinder widespread adoption

Despite regulatory advances, analysts have flagged pricing as a major challenge. According to Moneycontrol, Starlink’s broadband service costs 10–14 times more than similar offerings from Jio and Airtel, potentially making it viable only for niche users.

Addressing such fears on 6 May, Minister of State for Communications Chandra Sekhar Pemmasani said, “People are scared they will take away the market... that is not true. This is mainly for remote areas and inside homes.”

Growing competition in satellite internet

Starlink enters a competitive satellite broadband landscape featuring OneWeb, Eutelsat, and the Jio-SES venture. Amazon’s Project Kuiper is still awaiting its LoI. The Telecom Regulatory Authority of India (TRAI) is expected to announce spectrum pricing guidelines shortly, potentially speeding up commercial activity across the sector.