Ahead of visit to India, Musk’s Starlink gets preliminary approval

Elon Musk’s satellite venture, Starlink, has received preliminary approval from the Telecom ministry after a wait of over three and a half years. However, it still awaits security clearance from the Ministry of Home Affairs (MHA) ahead of Musk’s upcoming visit to India later this month.

Musk, the CEO of Tesla and SpaceX, is scheduled to visit India on April 21 and 22 for discussions with Prime Minister Narendra Modi. His visit is anticipated to involve significant announcements, including the debut of Starlink and potential investments ranging from $2 billion to $3 billion in India.

According to sources, the commercial aspects of Starlink’s application, such as foreign investment and net worth, have been thoroughly examined and found to align with official guidelines, leading to its approval. Additionally, technical requirements have been reviewed in accordance with licensing conditions, and the company has provided a declaration regarding its ownership.

Government concerns primarily revolved around Starlink’s ownership, particularly ensuring the absence of stakeholders from countries sharing a land border with India. This issue has been addressed following Starlink’s submission of a declaration regarding its ownership structure.

Presently, the file awaits final review by Communications Minister Ashwini Vaishnaw, pending clearance from the home ministry on certain security matters. Upon approval by Vaishnaw, Starlink will be granted a Global Mobile Personal Communication by Satellite (GMPCS) services license, a prerequisite for offering satellite communication services in India. Other companies, such as OneWeb (backed by Bharti Airtel’s Sunil Mittal) and Jio (in partnership with Luxembourg-based SES) have already obtained GMPCS licenses, although spectrum allocation and pricing details are yet to be finalized by the regulator Trai.

Starlink, SpaceX’s satellite internet service, offers high-speed internet connectivity globally. With a GMPCS license and trial spectrum in hand, Starlink could conduct a pilot of its services in the retail consumer space. However, permission from the Ministry of Home Affairs, law enforcement, and security agencies is also required due to security concerns raised by the Modi government.

Previously, Starlink had provided clarification on its shareholding pattern to the Department for Promotion of Industry and Internal Trade (DPIIT), citing US regulations as the reason for its inability to disclose all ownership details.