Starlink India launch: security, pricing and regulatory hurdles

Last week, in a social media post, Elon Musk blamed “certain oligarchs” for blocking the entry of Starlink in India. While the process of regulatory approvals and clearances in satellite communications appears to have moved slowly, the allegation does not hold up. “Security assessment as part of this process is currently underway in respect of all the three licensees,” the Union government has said, and currently all three entities, Starlink, Jio Satellite Communications, and Eutelsat OneWeb, “are at broadly the same regulatory stage”. Moreover, last year Starlink had entered into agreements with telecom majors Reliance Jio and Bharti Airtel in order to offer its internet services in the country, both of whom have themselves been at odds on the issue of spectrum.

There are compelling security issues on satellite communications that need to be assessed carefully. Legitimate concerns over the enforcement of local laws and rules need to be addressed. It is not difficult to imagine scenarios where connectivity can be possibly restricted or denied when required, or allowed when the situation warrants differently. What played out in Ukraine is instructive. During the Russia-Ukraine conflict, Ukraine came to rely on Starlink for communication. There are reports, however, of alleged interference in Starlink’s services in the region during the conflict.

There are significant gains to be made from the deployment of satellite internet, especially in far flung areas across the country that have poor connectivity. But there are also issues of affordability, which is perhaps why Musk, in a social media post, has said, “obviously, if Starlink is too expensive in India, no one will buy it, so SpaceX will need to make pricing affordable”. For widespread adoption, pricing for equipment and monthly fees will need to be in line with the country’s average broadband revenue per user. As India moves ahead, it must be mindful of the risks, strike a balance between safeguarding national interests and ensuring a transparent regulatory process, while enabling technological innovation and spurring competition.