Elon Musk’s satellite broadband company, Starlink, edges closer to securing a foothold in India, agreeing to meet crucial government requirements on data storage and security.
Credits: Telecom Talk
A Milestone for Starlink in India
Elon Musk’s satellite internet business, Starlink, is poised for success in India, one of the biggest unexplored satellite internet markets in the world. The corporation has agreed, “in principle,” to follow India’s data localization and security standards after months of discussions with the Department of Telecommunications (DoT). This has long been a subject of contention for foreign businesses looking to obtain licenses in India. The Global Mobile Personal Communication by Satellite Services (GMPCS) license, which is necessary to run satellite-based internet services in India, is now one step closer for Starlink thanks to this development.
The move is timely, as global satellite broadband companies, including Amazon’s Kuiper, are also in talks with India’s space regulatory body, IN-SPACe, to enter this market. Starlink’s readiness to meet regulatory requirements shows its commitment to India, where satellite broadband could be transformative, especially in rural and remote regions.
Meeting India’s Data Localization Requirements
One of the primary hurdles Starlink faced was India’s data localization mandate, which requires all operational data to be stored within the country. The regulation is intended to enhance national security and give Indian authorities quicker access to data when necessary. Starlink’s decision to comply with these guidelines is pivotal, considering the DoT sees it as a non-negotiable requirement for a GMPCS license.
Furthermore, Starlink may need to demonstrate how it can facilitate data interception by intelligence agencies if required. Compliance on this front is vital as India’s security protocols demand heightened oversight, especially with foreign-owned data transmission services.
Securing a GMPCS License: What It Means for Starlink
The GMPCS license, a foundational requirement for launching satellite internet in India, would allow Starlink to begin limited operations using a trial spectrum, granted at a nominal fee. This type of license provides a crucial entry point, enabling companies to assess demand, infrastructure requirements, and potential challenges in a new market.
Starlink initially applied for the GMPCS license in October 2022 and, alongside other satellite providers like Amazon Kuiper, has been navigating India’s complex regulatory landscape. With IN-SPACe, the space regulatory body, now pushing for further clarifications from applicants, Starlink’s compliance with data localization is likely to bolster its case, allowing it to move closer to final approval.
Pricing and Spectrum Allocation: A Contentious Issue
In India, the rollout of satellite internet services is still in its infancy, but debates around spectrum pricing and allocation are intensifying. On one side, global satellite companies like Starlink and Amazon argue that the satellite spectrum should be allocated administratively rather than through auction to keep costs down, particularly for rural consumers who would benefit most from satellite broadband. Starlink’s India Director, Parnil Urdhwareshe, argued that if telecom spectrum can be shared administratively among companies for 5G, then satellite spectrum allocation should follow a similar, non-auction route.
Local telecom providers, including Reliance Jio, Bharti Airtel, and Vodafone Idea, oppose this approach. These players contend that only auctioned spectrum should be used for urban areas, where satellite broadband will compete directly with their existing services. During recent regulatory discussions, they argued that without an auction, satellite providers would have an unfair advantage, potentially skewing the market.
The Telecom Regulatory Authority of India (TRAI) is now conducting consultations to devise a fair pricing methodology, with recommendations expected by December. The outcome will significantly influence how quickly and affordably satellite internet can be rolled out in India.
A Competitive Frontier: India’s Space Economy Awaits a Boost
India’s space economy is estimated at approximately 2% of the global space market, but IN-SPACe believes this figure could rise to 8% by 2033, equivalent to a $44 billion valuation. As global satellite broadband providers seek entry, India is well-positioned to attract new investments, create jobs, and bridge the digital divide in remote and underserved regions.
Satellite broadband also represents a significant step in India’s Digital India vision, aiming to bring high-speed internet to areas where traditional infrastructure lags. With its entry, Starlink, alongside other satellite players, could reshape connectivity in rural India, where internet access remains limited despite high demand.
