Elon Musk's Starlink gets govt nod in India for satcom service: What it means for users, pricing and more

Elon Musk’s Starlink has taken a major step towards launching its satellite internet services in India, having received a Letter of Intent (LoI) from the Department of Telecommunications (DoT). The approval, issued after months of deliberation, comes on the back of Starlink agreeing to India’s stringent national security norms rolled out earlier this week.

Starlink, a division of Musk’s aerospace firm SpaceX, delivers broadband internet via a constellation of over 7,000 Low Earth Orbit (LEO) satellites, a number expected to rise past 40,000 in the coming years. Unlike traditional geostationary satellite services, LEO satellites orbit closer to Earth (around 550km), significantly reducing latency and enabling services like HD video streaming, online gaming, and video conferencing even in remote areas.

According to sources, the DoT granted the LoI after Starlink accepted 29 strict security conditions, including requirements for real-time terminal tracking, mandatory local data processing, legal interception capabilities, and localisation of at least 20% of its ground segment infrastructure within the first few years of operation.

Starlink’s nod came amid heightened national security sensitivities, coinciding with India’s pre-dawn Operation Sindoor strikes on terror camps across the border in response to the Pahalgam massacre. However, DoT officials clarified that the decision to approve Starlink was independent of these military developments.

Security vs. Access: A Delicate Balance

While most conditions were accepted, two controversial proposals, mandatory Indian majority shareholding and prohibiting terminal use near international borders, were eventually dropped. Officials stated these conditions clashed with existing telecom and FDI regulations. As per current policy, 100% foreign direct investment is allowed in the sector, which Starlink has already complied with.

In contrast to players like Eutelsat OneWeb and Jio-SES, which have only been cleared to provide fixed satellite services, Starlink could be the first to offer mobile satellite internet services in India under the GMPCS (Global Mobile Personal Communication by Satellite) licence, enabling connectivity on the move. This could be crucial in emergency response scenarios and for users in transit across remote terrains.

Pricing and Accessibility: What Indian Consumers Can Expect

With regulatory barriers easing, attention is turning to what Starlink’s services might cost Indian consumers. Industry reports suggest that monthly subscription prices could range between ₹3,000 and ₹7,000, depending on the plan and region. Additionally, the one-time cost for Starlink's user terminal kit, which includes a satellite dish and Wi-Fi router, is expected to fall between ₹20,000 and ₹35,000.

These figures are significantly higher than those of conventional broadband providers in India, where monthly rates average around ₹500. As a result, Starlink’s early adopters will likely be businesses, institutions, and residents in underserved or hard-to-reach regions.

Despite the steep costs, analysts say the service could be a game-changer for rural connectivity. Its high-speed, low-latency performance offers digital access in places where laying fibre or building towers is not feasible. If supported through government initiatives or subsidies, the service may have a meaningful impact on online education, remote healthcare, and disaster response.

Still, affordability remains a challenge. Union Minister of State for Telecom Chandra Sekhar Pemmasani recently downplayed fears of market disruption, saying Starlink’s global user base remains small (under 5 million) and the technology is far more expensive and slower compared to traditional networks.

“Whether they come or not… they will be very small players even if they come. It is 10 times more expensive than our traditional models,” the minister said at an industry event on Tuesday. He added that Starlink is best suited for indoor connectivity in difficult-to-reach areas and not a replacement for mobile or urban broadband services.

Before it can go live, Starlink must still receive approvals from the Indian National Space Promotion and Authorisation Centre (IN-SPACe) and obtain spectrum allocation from the government. TRAI is currently finalising pricing recommendations for the administrative allocation of satcom spectrum.

Meanwhile, Starlink has already inked agreements with major Indian telecom firms like Reliance Jio and Bharti Airtel to expand its reach and explore bundled offerings.

Elon Musk is expected to visit India later this year, potentially to firm up these partnerships and evaluate further investments.