India’s space regulator, the Indian National Space Promotion and Authorization Centre (IN-SPACe), has granted Starlink a five-year license to commence commercial operations in the country.

The decision, announced on July 9, 2025 represents the final regulatory clearance needed for the satellite internet provider to enter the Indian market.

Starlink, founded by Elon Musk, has been awaiting regulatory approvals since 2022.

The company had previously secured a key license from India’s telecom ministry but required IN-SPACe’s authorization to move forward.

Starlink is now the third company to receive approval to offer satellite services in India, joining Eutelsat’s OneWeb and Reliance Jio.

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🔗 Source: Reuters

🧠 Food for thought

1️⃣ India’s satellite policy evolution marks a significant shift after decades of stagnation

India’s satellite communications regulatory framework has remained largely unchanged since 1997, when it was established as a brief two-page document with only five broad points that primarily emphasized using Indian satellites1.

The approval for Starlink represents a shift from this restrictive approach, with India now having authorized three satellite broadband providers including Eutelsat’s OneWeb and Reliance Jio2.

This evolution coincides with India’s broader space sector liberalization efforts aimed at enhancing private participation, both domestic and international, in what was historically a government-dominated domain3.

The regulatory process remains complex, requiring approvals from multiple government entities, including the Department of Telecommunications and IN-SPACe, reflecting the administrative challenges that have historically slowed satellite communications development in India1.

This regulatory milestone demonstrates India’s efforts to become a more competitive player in the global space economy while trying to balance national security concerns with the need for technological advancement.

2️⃣ Spectrum allocation battle reveals deeper tensions in India’s telecom landscape

The spectrum allocation method for satellite services has sparked significant controversy, with Elon Musk and Mukesh Ambani directly clashing over whether satellite spectrum should be administratively assigned or auctioned4.

The government’s decision to adopt administrative allocation aligns with global practices but represents a departure from India’s auction-based approach for terrestrial spectrum, which has generated substantial revenue for the government5.

TRAI has recommended a five-year spectrum allocation period with a 4% adjusted gross revenue fee and a minimum annual charge of ₹3,500 per MHz—a framework that established telecom operators argue creates an unfair competitive advantage6.

Traditional telecom companies, which have invested billions in spectrum auctions, have expressed concerns that the lower entry barriers for satellite providers could disrupt market dynamics, especially as satellite internet increasingly targets the same customer segments7.

This regulatory decision reflects India’s challenging balancing act between attracting innovative global players while protecting the interests of domestic companies that have made substantial investments in the country’s digital infrastructure.

3️⃣ The affordability challenge threatens satellite internet’s promise of digital inclusion

Despite Starlink’s technological capabilities, its estimated service cost of approximately ₹3,000 per month remains significantly higher than traditional broadband options, potentially limiting its impact on digital inclusion8.

The stark contrast becomes evident when comparing Starlink’s pricing with government initiatives like Tamil Nadu’s plan to offer 100 Mbps connections for just ₹200 per month by late 2025, highlighting the affordability gap that satellite providers must address8.

With over 652 million Indians lacking reliable internet access, particularly in rural and remote regions, satellite internet offers tremendous potential for connectivity, but only if pricing models can be adapted to local economic realities9.

Industry analysts expect satellite providers to initially focus on enterprise customers and high-value segments where the premium pricing is more sustainable, potentially delaying the broader digital inclusion that satellite technology promises7.

The success of satellite internet in India will ultimately depend on finding the right balance between commercial viability and accessibility, potentially through innovative business models, government subsidies, or technological advancements that reduce costs.

Recent Starlink developments

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