India sets stage for Elon Musk’s Starlink internet services to finally enter India with latest spectrum decision

After years of navigating regulatory challenges, Elon Musk's satellite internet project, Starlink, is on the verge of officially entering the Indian market. A recent decision by the Indian government to allocate satellite spectrum through administrative means, rather than auctioning it, has paved the way for Starlink to expand its global reach into one of the largest untapped markets for satellite-based broadband services.

What does the decision mean?

Recently, India's Department of Telecommunications (DoT) decided to administratively allocate spectrum for satellite communication services. This move rebuffed demands from local telecom giants like Reliance Jio and Bharti Airtel, which lobbied for an auction-based approach, arguing it would create a level playing field. Instead, the government followed the global norm of administrative allocation, which Musk has publicly supported as the standard for satellite communications worldwide.

This administrative route means Starlink and other satellite internet providers, such as OneWeb and Jio Satellite Communications, can now gain access to satellite spectrum without competing in costly auctions. The pricing of the spectrum will still be regulated by the Telecom Regulatory Authority of India (TRAI), ensuring fairness.

Starlink’s history in India

Starlink has long been eyeing the Indian market due to the country’s large rural population, many of whom lack reliable internet connectivity. Initially, Starlink began offering pre-orders for its satellite-based internet services in 2021. However, the company ran into regulatory hurdles and was forced to refund customers after the Indian government instructed it to comply with local laws before accepting bookings. Since then, Starlink has been working behind the scenes to secure the necessary approvals.
This recent shift in policy could finally allow Starlink to enter the market officially, a significant victory after nearly three years of attempts.

Musk’s comments

Elon Musk has been vocal about his support for administrative spectrum allocation, calling any move to auction satellite spectrum "unprecedented." He believes that auctioning spectrum reserved for satellite communications, as was lobbied for by Mukesh Ambani’s Reliance, could limit the ability of satellite providers like Starlink to offer affordable services.

The introduction of Starlink into India’s internet landscape is expected to revolutionise connectivity in rural and underserved areas. Starlink’s low-Earth orbit (LEO) satellites promise high-speed broadband services in regions where laying fiber or other traditional infrastructure is either impractical or too costly. This could significantly reduce the digital divide, offering millions of Indians access to reliable internet for the first time.
While the decision to allocate spectrum administratively is a win for Starlink, it faces competition from local satellite players like Jio Satellite Communications and Airtel-backed OneWeb, which have already received regulatory clearances. The pricing model set by TRAI will be crucial in determining how competitively Starlink can operate in India. Moreover, the company will need to navigate India's complex regulatory landscape, which includes securing further clearances from various government bodies.

Overall, the stage is set for a transformative shift in India's internet connectivity landscape, with Starlink poised to play a central role in bringing high-speed internet to even the most remote corners of the country.