Senior officials of the company made a request at a recent meeting with union Commerce and Industry Minister Piyush Goyal. In addition to nodding in search of faster application, the company also discussed plans to expand operations in the country.
“The delegation held with Starlink, including Vice President Chad Gibbs and Senior Director of Ryan Goodnight. The discussion covers Starlink’s cutting-edge technology platform, their existing partnerships in India and future investment plans,” Goyal said in a post on X on Wednesday.
Inquiries sent to Starlink by email and the Ministry of Commerce did not elicit any response until the release date.
Security review is still ongoing
“The government is still checking Starlink’s application from a security perspective. The company can only invest in the country after approval,” a government official said on anonymous.
The company’s investment will be mainly used to establish a Earth Station portal in the country. The Satellite Earth Station Portal is a ground-based facility that serves as an important link between satellites and local networks and the core of the internet connection.
“Starlink is currently considering establishing three Earth Station portals under the shared plan,” another official said.
Starlink has submitted its application to the Department of Telecommunications (DOT) for global mobile personal communications with a satellite (GMPCS) license in 2022. The license is a key requirement for providing satellite-based communication services in the country.
In addition to the permit, the company also requires approval of the Indian National Center for Space Promotion and Authorization (Space), its satellite constellations and the capabilities it will create to provide services in the country.
According to government officials, Starlink has accepted key specifications to obtain permission to launch satellite broadband services in the country. This includes government-stated security and data storage requirements. However, before approving the company’s application, the government still wants to determine from a national security perspective.
Data rules, spectrum pricing key
These guidelines require companies to store all user data in the country and ensure data interception by intelligence agencies is facilitated when needed. This is a prerequisite for obtaining any license under the DOT.
The Telecom Regulatory Authority of India (TRAI) is also finalizing recommendations on satellite service spectrum as well as other terms and recommendations including license term, spectrum usage fees, etc.
Rural Opportunities
According to analysts, once Starlink’s application in the country is approved, it will bring fast and reliable internet to underserved areas. In addition, the company will also serve urban areas through its satellite Internet services.
“40% of India’s population is associated with most cases in rural areas without internet access. This represents a huge market opportunity for the client base in rural areas (for Starlink)” analysts at Bernstein, a brokerage firm, said in a note on March 4.
However, the analyst added: “Facts such as affordability, competition from established ground providers such as Reliance Jio and Bharti Airtel, and pricing sensitivity mean that only a small percentage of these people may be subscribed.”
Pricing gap with local providers
Starlink is priced significantly higher in India, 10 to 14 times higher than the country’s leading broadband provider, according to Bernstein’s estimates. For connections that offer speeds of 50 to 200 Mbps, users need to pay a prepayment ₹52,242, monthly subscription ₹10,469. When taxes and other expenses are included, the total annual expense is approximately ₹$2.16 billion in interstellar links.
By contrast, Airtel and Jio’s similar speed fiber broadband plans are only used for ₹11,000 to ₹Bernstein said 15,000 a year.
Currently, the Jio platform and Eutelsat Oneweb, led by Bharti Enterprises, has obtained the necessary approval to provide satellite broadband internet in the country.
Last month, Bharti Airtel and Reliance Jio, India’s largest telecommunications service provider, signed an agreement with SpaceX to provide Starlink’s broadband internet service to its customers in India.
Telecom operators have opposed entering such participants to avoid competition and will explore opportunities to provide Starlink equipment in their retail stores, providing services to corporate clients, and connecting with communities, schools and health centers.
Starlink operates the world’s largest satellite constellation and currently has over 6,750 satellites in orbit, providing high-speed, low-latency internet to millions of active customers around the world and based on details on its website.
