Elon Musk's Starlink Seeks Satellite Broadband License in India

NEW DELHI (Reuters) – Elon Musk's Starlink is pursuing security clearance for a license to provide satellite broadband services in India. Telecom Minister Jyotiraditya Scindia announced on Tuesday that a permit will be granted if all conditions are satisfied.

Starlink has aimed to enter the Indian market for several years, and its aspirations received a significant boost last month when New Delhi decided against auctioning spectrum for satellite broadband, opting instead for administrative awards—aligning with Musk's preference. This move contrasts with the interests of rival Indian telecom billionaire Mukesh Ambani, who favored an auction.

According to Minister Scindia, Starlink is in the process of obtaining the necessary security clearance, which entails local data processing and secure satellite signals to satisfy the government's stipulations. "When you check all the boxes, you get the licence. If they (Starlink) do that, we will be very happy," he remarked at an event in New Delhi.

Achieving security clearance would advance Starlink's efforts to compete in India's broadband market, where Ambani's Reliance Jio currently leads with approximately 14 million wired subscribers. Ambani, Asia's richest individual, has over 479 million telecom users in India and expressed concerns about potentially losing broadband customers to Musk's technology, especially after his recent $19 billion investment in auctions.

Reliance has already received security clearance to launch its satellite broadband services, as noted by a source with direct knowledge of the situation. Starlink has indicated its readiness to meet all of New Delhi's security criteria, according to another informed source.

Once security clearance is secured, Starlink will also need to obtain spectrum to initiate its satellite broadband services. Notably, Ambani previously offered free data on mobile plans, adopting aggressive pricing strategies similar to Musk's, who priced Starlink at $10 per month in Kenya, compared to $120 in the U.S., raising concerns among local telecom competitors.