Elon Musk’s Starlink, the satellite internet provider, is working to comply with regulatory requirements in India and will be granted a license once it meets these conditions, Telecom Minister Jyotiraditya Scindia announced. Scindia highlighted the importance of compliance, including from a security perspective, and assured that Starlink is actively addressing the requirements needed to operate in India. The licensing process for satellite-based internet has sparked debate, as Starlink, Amazon's Project Kuiper, and Indian telecom companies like Reliance Jio, Bharti Airtel, and Vodafone Idea compete in the broadband space.
A key issue centers on how satellite spectrum should be allocated and priced. Indian telecom companies advocate for auctioned satellite spectrum for urban broadband services, which they argue would ensure a fair market, especially as global players like Starlink and Amazon expand in cities.
However, global satellite operators, including Starlink, contend that auctioning isn’t ideal since satellite spectrum is typically shared rather than exclusively held. They argue that administrative allocation would better support equitable access to satellite-based services. Starlink has even cited that if 5G spectrum can be shared among telcos, satellite spectrum should also be administratively allocated rather than auctioned.
The issue was further heated last week during discussions between Starlink, Project Kuiper, and Indian telecoms. The telecom companies argued for auction-based allocation, pointing out that without auctions, global satellite companies could disrupt the market. Starlink, however, pushed back, stating that shared spectrum practices would create a level playing field without undermining local operators. The Telecom Regulatory Authority of India (TRAI) continues to consider input from both sides as it navigates this complex regulatory issue.
