In a significant step towards enhancing internet connectivity across India, Elon Musk's Starlink has been granted a license to launch its satellite internet services in the country. This announcement was made by Union Telecom Minister Jyotiraditya Scindia, coinciding with the 30th anniversary of the first cellular call in India.
The license, a "Unified License," authorizes Starlink to provide connectivity services across India. Minister Scindia also stated that the frameworks for spectrum allocation and gateway establishment are in place to ensure a smooth rollout of services.
Starlink's entry into the Indian market is expected to boost the country's digital infrastructure, particularly in remote areas that lack traditional internet access. Satellite internet offers a solution to bridge the urban-rural divide and improve connectivity in mountainous regions, islands, and border areas.
Licensing and Regulatory Hurdles
The path to obtaining the license has been challenging for Starlink. The company initially applied for permissions in 2021 but faced delays due to spectrum allocation and regulatory approvals. The regulatory process for satellite licenses involves intense scrutiny and compliance with strict security requirements, including mandatory interception and monitoring protocols, the use of local data centers, and location tracking of user terminals. Starlink also had to refund pre-orders it had received after being told not to solicit them without official approval.
Even with the license secured, Starlink still needs to be formally allocated spectrum by the regulator before commercial services can begin. Other companies, including Bharti Group-backed Eutelsat OneWeb and Jio Space Technology, are also awaiting spectrum allocation.
India's Digital Transformation
Minister Scindia highlighted the digital transformation that India has undergone in recent years. Telephone connections in the country now stand at 1.2 billion, and internet subscriptions have surged by approximately 286% to 970 million. Broadband usage has also experienced substantial growth, increasing from 60 million in 2014 to 944 million. The cost of mobile data has dropped by 96.6%, making India a global leader in affordable data at just Rs 8.9 per GB.
India's 5G rollout has covered 99.6% of districts, with 4.74 lakh 5G towers and 300 million users. The country has the world's highest per capita 5G usage (32 GB per month) and is among the top six countries in 6G patent filings.
Starlink's Plans and Potential Impact
Starlink aims to provide internet services via a network of low-Earth orbit satellites. While the exact launch date for Starlink's services in India is yet to be announced, reports suggest that the service could go live by the end of 2025 or early 2026.
Reports indicate that SpaceX may charge approximately Rs 33,000 for the Starlink hardware kit, which includes the satellite dish, router, and mounting equipment. The monthly subscription fee is expected to be around Rs 3,000 for unlimited data. Internet speeds are projected to range from 25 Mbps to 220 Mbps.
Starlink's services in India are expected to primarily target underserved and remote regions, with an initial cap of 2 million users. The network will complement existing telecom operators, particularly in areas where fiber infrastructure is limited.
BSNL Revival
Minister Scindia also mentioned the revival of BSNL, stating that the company reported back-to-back net profits of Rs 262 crore and Rs 280 crore in FY 2024-25 for the first time in 18 years. Over 83,000 4G sites have been installed, with 74,000 already operational, all built on indigenously developed technology.
