An official familiar with the matter stated, "They have accepted the security terms," indicating Starlink's willingness to comply with the Centre's directives issued earlier this week. These guidelines encompass 29 additional requirements for both existing and prospective satcom licensees, including the establishment of mandatory interception and monitoring mechanisms, the utilization of local data centers, location tracking for mobile user terminals, and adherence to localization mandates.
The report further suggests that during prior consultations, Starlink had expressed reservations regarding two specific demands: the monitoring of terminals situated near international borders and the stipulation of a mandatory Indian majority shareholding for satcom operators seeking licenses.
However, it appears the government has opted to forgo these particular demands, reportedly due to concerns that they might contravene the existing Telegraph Act of 1885. A source noted, "While the condition (monitoring terminal) was proposed by law enforcement agencies, the DoT felt it can’t be included as it goes against the Telegraph Act."
Regarding the shareholding requirement, the DoT reportedly reached an internal consensus that the current policy already permits 100% Foreign Direct Investment (FDI) in the sector, leading to the withdrawal of the demand for majority Indian ownership.
This development positions Starlink favorably against its homegrown competitors, such as Bharti Enterprises-backed Eutelsat OneWeb and Jio-SES, in the race to launch mobile satcom services across India. Sources suggest that "Starlink will likely offer mobility services along with the GMPCS licence," potentially giving it an edge as other firms may need to secure additional approvals for such services. It's important to note that both Jio-SES and Eutelsat OneWeb currently only possess authorization to offer fixed satcom services in the country.
To proceed further, Starlink will now need to obtain approval from the Indian National Space Promotion and Authorization Centre (IN-SPACe). According to the report, the company has already submitted the necessary documentation for this purpose. Additionally, Starlink will require the allocation of spectrum to commence its operations.
The Telecom Regulatory Authority of India (TRAI) is anticipated to issue its recommendations on the pricing for administrative spectrum allocation in the near future, a crucial step for all satcom players.
This progress for Starlink occurs amidst growing interest from a range of global players seeking satcom licenses in India, including Amazon’s Project Kuiper and Apple partner Globalstar. Meanwhile, existing licensees like Eutelsat OneWeb and Jio-SES are still awaiting spectrum allocation to begin their operations.
Interestingly, Starlink recently announced strategic partnerships with both Reliance Jio and Airtel, signaling its intent to leverage these established telecom giants to offer its satcom services to their extensive customer bases across the country. This collaborative approach could prove pivotal in accelerating Starlink's market penetration upon final approvals and spectrum allocation.