New Delhi: India has effectively frozen approvals required for Elon Musk’s satellite internet service Starlink to begin commercial operations in the country, Bloomberg reported, citing people familiar with the matter.
According to the report, security agencies under the Ministry of Home Affairs have withheld the final clearances needed for Starlink’s launch. The move stems from concerns about the government’s ability to exercise control over a US-based communications provider during periods of geopolitical tension.
Bloomberg reported that concerns intensified following reports suggesting Starlink terminals were used during the Iran conflict despite the service not being licensed in Iran. Indian officials are reportedly examining whether the company can ensure compliance with Indian security requirements when faced with competing demands from foreign governments.
The development comes at a crucial time for SpaceX. Bloomberg reported that the company is expected to price what could become the largest initial public offering in history through a Nasdaq listing targeted at a valuation of around $1.75 trillion. The report noted that Starlink is central to SpaceX’s revenue growth plans, making regulatory challenges in major markets such as India particularly significant.
Security agencies have reportedly kept Starlink’s security clearance pending despite the company obtaining a Global Mobile Personal Communication by Satellite (GMPCS) licence in India nearly a year ago. While the licence allowed the company to prepare for operations and enter commercial agreements, it did not constitute final approval to begin services.
According to Bloomberg, Starlink had previously conducted security demonstrations before telecom authorities and a dedicated security review panel. However, Indian officials later sought additional clarifications and compliance measures.
The report stated that Starlink’s security clearance will remain pending until the company can explain how it would guarantee compliance with India’s security requirements despite its global operations and US ownership.
Bloomberg also reported that the delay has stalled a broader satellite-spectrum pricing proposal required for commercial satellite communication services in India. The Ministry of Home Affairs, the Ministry of Communications and SpaceX did not immediately respond to requests for comment.
