Negotiations for Starlink’s Entry into India

Syllabus: GS3/ Infrastructure, Science and Technology

Context

  • Starlink has begun discussions with key Indian players in the satellite communication , telecom, and broadband sectors, to accelerate the rollout of its services across India.

What is Starlink?

  • Starlink is a satellite internet service developed by SpaceX, designed to provide high-speed, low-latency broadband access globally, particularly in underserved and remote areas. 
  • Utilizing a constellation of over 7,000 small satellites in low Earth orbit (LEO), Starlink aims to deliver internet services where traditional infrastructure is limited or unavailable .​

Regulatory Frameworks Apply to Starlink in India

  • Indian Telegraph Act, 1885: Starlink needs to obtain a Very Small Aperture Terminal (VSAT) licence from the Department of Telecommunications, as required under Section 4 of the Indian Telegraph Act, which gives the government exclusive control over communication services.
  • Telecom Regulatory Authority of India (TRAI) Act, 1997: The Telecom Regulatory Authority of India (TRAI) advises on licensing and spectrum pricing under Section 11, influencing how Starlink can offer its services.
  • Telecommunications Act, 2023: The law governs spectrum allocation, including Starlink’s use of Ku- and Ka-band frequencies, and mandates compliance with pricing, security, and interference norms.
  • Satellite Communications Policy, 2000 & IN-SPACe: Starlink must coordinate with the Indian National Space Promotion and Authorisation Centre (IN-SPACe) to ensure its satellites do not interfere with Indian assets and follow national space priorities.
  • IT Act, 2000 & Digital Personal Data Protection Act, 2023: The laws require Starlink to ensure cybersecurity, lawful data access, and user privacy protections, subject to oversight by the government.

Benefits of Starlink for India

  • Rural Connectivity: It offers high-speed internet to areas where traditional fibre-optics or mobile towers are unviable.
  • Economic Empowerment: It has the potential to uplift rural education, e-health, agri-tech, and e-commerce ecosystems.
  • Strategic Value: It will enhance disaster communication, military connectivity, and border area infrastructure.
  • Digital Inclusion: It aligns with Digital India and BharatNet goals, promising equitable access.

Challenges in Starlink’s Entry into India

  • The process of acquiring a VSAT licence is complex and time-consuming. It involves extensive technical evaluations and financial scrutiny by the Department of Telecommunications.
  • The Telecommunications Act, 2023 permits administrative satellite spectrum allocation, but disagreements remain between the Department of Telecommunications and TRAI over pricing and usage terms.
  • The Ministry of Home Affairs and intelligence agencies have yet to grant security clearance. 

Concerns raised over Starlink entry

  • Starlink is expected to launch its satellite internet service in India at a premium price due to its high capital expenditure and regulatory obligations.
  • The hardware required to access Starlink’s services, including the satellite dish (user terminal), router, and related equipment, is also expected to be expensive for most rural households.
  • The service is likely to initially target institutions, remote businesses, and high-net-worth individuals in underserved regions, rather than the rural populations it eventually aims to serve.
  • Alleged Misuse: Reports of devices being exploited for unlawful activities have alarmed authorities.

Concluding remarks

  • As India aims to lead the digital economy, the Starlink experience underscores the need for adaptive, transparent, and secure regulatory frameworks that foster innovation. 
  • Integrating satellite internet could bridge rural-urban divides and provide millions with access to education, healthcare, markets, and governance, ultimately building a more equitable and connected society.

Sources: TH

 

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