Elon Musk's Starlink agrees to data security rules, satcom license application back on track: Report

The move comes as Musk, who supported former US President Donald Trump in the recent election, could hold a significant influence within the anticipated administration.

This potential influence is expected to bolster Starlink's leverage in pursuing its satellite internet operations in India, sources told Moneycontrol.

In recent meetings with the Department of Telecommunications (DoT), Starlink gave a preliminary commitment to adhere to India’s data security protocols, a critical step in securing a General Mobile Personal Communication by Satellite Services (GMPCS) license for satellite broadband operations, as per reports.

However, the company has not yet formally submitted its compliance agreement.

A GMPCS license is essential for companies looking to set up satellite internet services, allowing them to acquire a trial spectrum at a minimal application cost.

According to security rules, satellite communication firms must store data domestically in India as a prerequisite for the license, with requirements for accessibility by intelligence agencies if needed.

Meanwhile, a heated competition has emerged between Indian telecom providers—Reliance Jio, Bharti Airtel, and Vodafone Idea—and global satellite companies like Starlink and Amazon.

The debate centers around the allocation and pricing of satellite spectrum, essential for space-based broadband services.

During a recent open house, Indian telecom operators argued that Starlink and other satellite companies intending to provide satellite broadband in urban areas should face the same requirements as local providers.

They urged the regulatory body to restrict satellite spectrum for urban services to auction-based allocations, ensuring fair competition with terrestrial networks.

In response, Starlink contended that satellite and terrestrial telecom services operate differently and should not be directly compared.

Parnil Urdhwareshe, Director of Starlink India, argued that if 5G spectrum is shared among telecom providers, satellite spectrum should also be allocated administratively rather than through auctions.

The Indian space agency IN-SPACe estimates the nation’s space economy could reach $44 billion by 2033, accounting for roughly 8 percent of the global market, up from its current 2 percent share, according to Moneycontrol.