Starlink, the satellite broadband venture by Elon Musk, is working towards obtaining security clearance necessary for a license to provide its services in India, according to the country’s telecom minister on Tuesday.
The company’s aspirations to enter the Indian market received a significant boost last month when the Indian government announced it would award permits for satellite broadband administratively rather than through an auction, aligning with Musk’s preferences. This contrasted with rival Mukesh Ambani’s preference for an auction process.
Telecom Minister Jyotiraditya Scindia confirmed that Starlink is currently navigating the security clearance process, which requires demonstrating compliance with local data processing and storage regulations, as well as ensuring the security of satellite signals.
“When you check all the boxes, you get the licence. If they (Starlink) do that, we will be very happy,” Scindia stated during an event in New Delhi.
Securing this clearance would bring Starlink closer to Musk’s goal of providing broadband services in India, a market where Mukesh Ambani’s Reliance Jio holds a commanding lead with 14 million wired subscribers.
Ambani, recognized as Asia’s wealthiest individual, oversees over 479 million telecom users in India. He has voiced concerns over potentially losing broadband and data customers to Musk’s company following a heavy investment of $19 billion (approximately Rs. 1,60,324 crore) in spectrum auctions.
According to insiders, Reliance has already acquired security clearance to commence its own satellite broadband services.
Starlink has expressed to the Indian government its readiness to meet all security requirements set forth by New Delhi, as per another source familiar with the developments.
Following the acquisition of security clearance, companies must also secure spectrum to begin offering satellite broadband services.
Ambani has previously provided data at no cost within his mobile plans, while Musk has employed similarly aggressive strategies. In Kenya, for instance, Starlink’s service is priced at $10 (approximately Rs. 843) per month, starkly lower than the $120 (about Rs. 10,125) charged in the United States, raising concerns among local telecom operators.
© Thomson Reuters 2024
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