Govt issues Letter of Intent to Starlink for satcom services

Time of India

07-05-2025

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Live Events
Security concerns and a watchful eye on Pakistan
Starlink's reach will be limited, not disruptive
Remote use cases only, says Minister
Price, speed and equipment are barriers
Other players already licensed, Starlink still waiting
The government has issued a Letter of Intent to Starlink , the satellite internet company led by Elon Musk, to offer satcom services in the country, according to official sources as told to PTI. Sources told PTI that the Department of Telecommunications (DoT) recently issued the Letter of Intent to Starlink, marking a significant step toward operational clearance. This comes after the government had already granted licences to two other players in the satcom space—Eutelsat OneWeb and Jio Satellite Communications.Starlink is a satellite-based internet service developed by SpaceX, the aerospace and space transport firm founded by Elon Musk in 2002. The service delivers high-speed, low-latency broadband internet using satellite technology and is aimed at reaching areas with limited connectivity.Unlike traditional satellite internet systems that depend on high-altitude geostationary satellites, Starlink's model is based on low earth orbit (LEO) satellites, placed roughly 550 kilometres above the Earth. Currently, the network consists of around 7,000 LEO satellites, but this number is expected to expand to over 40,000.The LEO satellite network creates a mesh-like system in orbit, allowing Starlink to offer internet speeds and responsiveness that can support data-intensive activities such as video streaming, online gaming, and video conferencing.Union Minister of State for Telecom, Chandra Sekhar Pemmasani , stated on Tuesday that while the issue remains 'a little complicated,' the proposal is in its last stages of review. He was addressing reporters during the Bharat Telecom event in Delhi.'It is a little complicated issue (permit for Starlink). We have to look from multiple angles. Security is one of them. Definitely, since it is in the final stages, we will get back on that,' Pemmasani told PTI in an earlier report.Security has emerged as a core concern for the government as it considers the implications of allowing global satcom firms to operate in Indian skies.The minister underlined the importance of this, especially in the current climate. 'The government's security norms for satcom are important, especially in the present scenario where hostile nation Pakistan is making an attempt to hack the country's system,' he said.Addressing fears that Starlink could shake up the Indian telecom market, Pemmasani downplayed the hype.'Starlink or the others, I wanted you to understand that in the entire world the number of subscribers Starlink has is less than 50 lakh. It's not much. If you look at the speed and other stuff it's much slower than the traditional networks. There should not be too much worry about ... Starlink coming, taking over, all those things. People don't understand this,' he explained.According to the minister, satellite-based services will play a supporting role rather than replacing the existing telecom infrastructure.Pemmasani made it clear that Starlink and other satellite communication providers will mostly operate in areas traditional networks find hard to reach.'It will be mainly to connect the remote areas where our traditional networks will be hard to reach and it will be mainly for the inside home connectivity and not for mobile services,' he said.He also highlighted the high costs associated with Starlink's services and infrastructure, which he believes will restrict widespread adoption.'I want people to know whether Starlink and all that stuff, whether they come or not ... they will be very small players even if they come. Starlink right now has around the world less than 50 lakh customers. It's very expensive to install the initial equipment. It is 10 times more expensive than our traditional models,' he said.The steep cost and technical limitations of satellite internet may act as natural barriers to market expansion in India.'The speed would be much lower than the traditional. So, these are all the barriers. That is why people around the world also would not. This is mainly for maritime or when you have a really remote area where you cannot get any connection. That is where the Starlink and all this stuff would be highly valuable. This exaggeration of Starlink is going to come and take over India is for people who do not understand how the system works,' Pemmasani said.Starlink isn't the only player eyeing India's satcom market. Bharti Group-backed OneWeb and Jio Satellite Communications are also in the race.The government has already granted licences to Eutelsat OneWeb and Jio Satellite Communications. Starlink remains the only major contender still awaiting final approval.However, all three will only be able to commence operations after the allocation of spectrum — a step yet to be completed. Final rules for spectrum allocation are expected to be shaped by recommendations currently under review from the Telecom Regulatory Authority of India (TRAI).(With inputs from PTI)