Starlink’s Entry Unlikely to Disrupt India’s Space Industry

Despite Starlink’s potential to revolutionize internet accessibility in India, its impact on the broader space sector is expected to be minimal, according to IN-SPACe chairman Pawan Kumar Goenka.

Starlink’s Arrival and Its Impact on the Indian Space Sector

The entry of Elon Musk’s Starlink, a satellite-based internet provider under SpaceX, has been a subject of much discussion in India’s telecom and space industries. However, Pawan Kumar Goenka, chairman of the Indian National Space Promotion and Authorization Center (IN-SPACe), has clarified that the development will not significantly impact India’s space ecosystem.

• No Overlap with Indian Space Companies: Goenka stated that no Indian company is currently offering the type of satellite-based broadband service that Starlink provides, making any disruption to the existing space industry unlikely.
• Industry-Specific Differences: The regulatory body views Starlink’s internet services as part of the telecom sector, rather than the space industry, which falls under IN-SPACe’s jurisdiction.

Telecom Giants Jio and Bharti Airtel Partner with Starlink

The discussion around Starlink’s expansion in India gained momentum after India’s two largest telecom operators, Jio Platforms and Bharti Airtel, announced partnerships with SpaceX within a span of two days.

• Jio-SpaceX Agreement: On March 12, Reliance Jio signed a pact with SpaceX to bring Starlink’s satellite-based broadband services to India.
• Bharti Airtel’s Collaboration: Just a day earlier, Bharti Airtel had sealed a similar deal with SpaceX, highlighting a growing interest in leveraging satellite internet solutions.

Regulatory Approvals Remain a Hurdle for Starlink in India

Despite these partnerships, Starlink’s launch in India remains conditional on securing regulatory approvals from key government bodies, including:

1. IN-SPACe (Indian National Space Promotion and Authorization Center)
2. The Department of Telecommunications (DoT)

• Pending Authorization: As of now, SpaceX has not received official clearance to commence Starlink’s operations in India.
• Previous Regulatory Roadblocks: In 2021, Starlink had begun taking pre-orders from Indian customers, only to later refund payments due to its failure to obtain the necessary approvals.

Data Localisation and Security Requirements Addressed

One of the major concerns that previously delayed Starlink’s entry into India was its compliance with government-mandated data localisation and security norms.

• Government Approval on the Horizon? Reports suggest that on November 11, Starlink agreed to meet India’s data localisation and security requirements, potentially clearing a major regulatory hurdle for its entry.

Boosting Digital Connectivity in Remote Areas

While Starlink’s satellite broadband services may not directly impact India’s space industry, its arrival could significantly influence the country’s digital infrastructure.

• Expanding Internet Access: The Indian government has been actively pushing for broader internet accessibility, particularly in rural and remote regions where traditional broadband services are unavailable or unreliable.
• Complementing Existing Efforts: Starlink’s satellite-based internet is expected to complement India’s existing telecom infrastructure, improving connectivity in underserved areas.

Tariff Policies and Global Trade Factors

Goenka also addressed concerns regarding new US tariffs and the possibility of India imposing reciprocal measures.

• Minimal Impact on India’s Space Sector: According to IN-SPACe, India has already taken steps to shield its space industry from potential disruptions caused by fluctuations in global trade policies.

Future of Starlink in India

Despite the uncertainty surrounding regulatory approvals, the growing interest from major Indian telecom companies indicates a potential shift in the country’s broadband landscape. If approved, Starlink’s high-speed satellite internet could revolutionize connectivity, particularly in rural and remote regions, helping bridge India’s digital divide.