Rs 1.6 Crore Fee, 2G Spectrum Scam Clauses For Starlink's Entry To India
New Delhi:
Elon Musk's satellite communication company Starlink will pay a non-refundable fee of Rs 1.6 crore and will likely be issued a licence by mid-June to begin its operations in India, sources have told NDTV Profit.
The venture is required to submit performance and financial bank guarantees totalling over Rs 1.20 crore and adhere to legal clauses focused on accountability and national security, the sources added.
The Letter of Intent (LoI) issued to Starlink in early May, has details of the terms and conditions as well as security guidelines that global Satellite communication companies must follow.
Sources also tell NDTV Profit that Starlink's Global Licensing Head, Parnil Urdhwareshe, is currently visiting Delhi for a meeting with top DoT(Department of Telecom) officials to review the final leg of their India project.
"The document (LoI) acts as a full-spectrum legal shield. Even if there's no direct link today, the government has left room to act if something surfaces later," a senior official said on condition of anonymity.
The LoI, issued by the Department of Telecommunications and reviewed by NDTV Profit, outlines a comprehensive set of obligations designed to ensure "control, accountability, and a loophole-free entry" into India's telecom ecosystem.
According to the document and sources, the non-refundable entry fee includes the company's authorisations under the Unified Licence for GMPCS, VSAT, and ISP-A services, to enable it to provide its services across India. Besides, the performance and financial bank guarantees will ensure the company meets its rollout and service obligation.
Failure to comply with the requirements will allow the government to invoke the guarantees and recover the amount directly from the bank, the document and sources said. The licence can also be revoked at any point if any disclosure is found to be false or misleading, they added.
Apart from financial conditions, the LoI has also listed several clauses for the deal with the satellite venture.
Starlink will need to clear all dues, not just for itself but for any affiliate, sister concern, or associated company that may have been connected to operators whose licences were cancelled under the Supreme Court's 2012 2G spectrum verdict, the sources said.
On February 2, 2012, the top court quashed 2G spectrum licences given to various firms during the tenure of A Raja as the telecom minister in January 2008. The Central Bureau of Investigation claimed there was a loss of Rs 30,984 crore to the exchequer during allocation of the licences.
Although, Starlink is yet to receive the final unified licence for operations in India, sources suggest the Musk-run company is likely to issue the document by mid-June, provided all conditions are fulfilled.
Starlink plans to roll out its first phase of infrastructure within six to seven months of obtaining government approval, including setting up over 27 ground gateways across three strategic locations in the country. A gateway is the bridge operating from an 'Earth station'; it links the user to the internet, enabling delivery of high-speed internet by connecting the satellites to the global internet infrastructure.
Earlier, sources said the satellite-based internet service provider will begin operations in India by offering 600 to 700 Gbps or gigabytes per second of bandwidth.
On Tuesday, Union Communications Minister Jyotiraditya Scindia said the country is eager to welcome players like Mr. Musk's Starlink.
"Just like in civil aviation, or in the telecom service provider space, or in the ISP space or the fixed wireless access space, my job is to ensure that I provide choice to the consumer. And India is ready for SATCOM service delivery. All players across the world are welcome. As long as they comply with our regulations, they check the boxes and are ready to perform business in India, all are welcome in India," he told NDTV Profit.
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