Starlink’s India Launch Delayed as Security Compliance Required

Union Telecom Minister Jyotiraditya Scindia confirmed that satellite communication services, including Elon Musk-owned Starlink, will launch in India once they meet security compliance requirements. The government has provisionally allocated spectrum to satellite communications companies to demonstrate their capability to comply with the demands of security agencies.

In an interview with the Press Trust of India (PTI), Scindia explained that the government is preparing to allocate spectrum to various players in the satellite communications sector, including Starlink, Eutelsat One, and Jio SGS. This allocation is contingent upon compliance with security clearances concerning international gateways and data localization.

Scindia stated, “There are two issues that need to be addressed. One by the licence holders OneWeb, Reliance Jio, and Starlink, which is to comply with security clearances regarding international gateways, ensuring data remains in India, and so on.” The government has already provided provisional spectrum to these companies, which are in the process of ensuring compliance.

The Department of Telecommunications (DoT) is currently finalizing spectrum pricing, a task complicated by ongoing disagreements with the Telecom Regulatory Authority of India (Trai). Recent discussions revealed differences over several points, including the proposed annual spectrum fee for satellite communication players, which Trai rejected, advocating for a 4 percent fee instead of the suggested 5 percent.

As the situation develops, the DoT is expected to present its findings to the Digital Communication Commission (DCC), which will determine the future course of action regarding spectrum pricing and may seek Cabinet approval for its decisions.

In addition to the satellite communications discussions, Scindia addressed the financial challenges facing Vodafone Idea (VIL). The company has liabilities amounting to approximately Rs 2 lakh crore, which includes Rs 1.19 lakh crore in spectrum dues. VIL has warned that without government support, the Centre could face significant financial losses, as the company stated that its equity value could become negligible and it may not recover its adjusted gross revenue (AGR) dues.

When questioned about the aids sought by VIL, Scindia remarked, “We are today applying our minds on that. It is work in progress within the Department of Telecommunications.” The Supreme Court has provided the government with the option to resolve the issue within its policy-making powers.

In terms of relief measures, Scindia clarified, “We have not given any relief as such. We have converted our dues into equity. Therefore, we hold a 49 percent equity stake in Vodafone against dues of close to, if I recall correctly, Rs 37,000 crore.” VIL is required to pay around Rs 18,000 crore by March 2026 and will face similar payments for the following six years, highlighting the company’s precarious financial situation.

Scindia emphasized the robustness of the Indian telecom market, which currently sustains four operators, including Vodafone Idea and Bharat Sanchar Nigam Limited (BSNL), serving around 210 million and 100 million customers, respectively. He stated, “Very few telcos in the world can boast of that. You have an economy with four players, very robust pricing, and high economies of scale in the market. We would like to see that continue.”

As the Indian government navigates these complex issues, the future of satellite communication services and the financial sustainability of major telecom players remains under scrutiny.