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Rs 1.6 Crore Fee, 2G Spectrum Scam Clauses For Starlink's Entry To India
Rs 1.6 Crore Fee, 2G Spectrum Scam Clauses For Starlink's Entry To India

NDTV

time2 days ago

  • Business
  • NDTV

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.

Government bans Indian satellite internet terminals from working outside India
Government bans Indian satellite internet terminals from working outside India

The Hindu

time06-05-2025

  • Business
  • The Hindu

Government bans Indian satellite internet terminals from working outside India

Even as Elon Musk-owned satellite internet service Starlink awaits clearances to operate in India, the Department of Telecommunications (DoT) this week issued further amendments to the Unified License (UL) and the Global Mobile Personal Communications by Satellite (GMPCS) authorisation, the latter of which satellite internet services need to begin offering their services in India. The requirements come in the wake of the Pahalgam attack in Kashmir. Many of the terms, issued through a circular by the DoT, echo existing requirements for all telecom licensees - such as enabling surveillance of users' web traffic, a requirement already in place for telecom operators and home broadband providers. But they come as an additional compliance burden at a crucial time, especially as Starlink faces a prolonged delay in obtaining the GMPCS authorisation, as well as satellite spectrum, which it needs to commence services. 'It is noteworthy that these security conditions have been introduced as an amendment to the Unified Licence itself, rather than as a separate guideline, ensuring that they are uniformly applicable to both existing GMPCS licensees and future applicants,' Mahwash Fatima, a public policy manager at tech policy firm The Quantum Hub told The Hindu. 'This provides regulatory consistency at a time when two players have already received GMPCS licences and others are in the pipeline.' While the amendments harmonise many requirements between telecom operators and satellite operators in the future, a key requirement may well be unprecedented anywhere in the world, and undermine Starlink's allure to some of its customers in India. Namely, while satellite terminals sold abroad must be disabled on Indian soil, the amendments also require that Indian-purchased terminals be disabled in other countries. Another unique requirement is that terminals must eventually be manufactured in India, within a five year span. 'The intent behind mandating geo-fencing is to prevent cross-border signal spillover, especially in sensitive regions, and to ensure that satellite connectivity can be monitored, intercepted, and governed in India,' Ms. Fatima said. This may 'create operational challenges for roaming terminals, such as those used in aviation, maritime, etc.,' she added. Starlink offers plans that work internationally, under a global roaming scheme, and this service will be unavailable to Indians traveling abroad, even when they're in a country where Starlink is expressly permitted, forcing them to potentially buy a second terminal when abroad - which they are prohibited from possessing in India. While Starlink inked deals with Jio Platforms Ltd, and Bharti Airtel Ltd. to distribute its services through the telcos, the firm faces enormous regulatory friction; the Telecom Regulatory Authority of India is yet to publish guidelines on how firms like Starlink can acquire spectrum, and the Department of Telecommunications has not indicated that it is in a hurry to begin that process either. The firm's executives met Commerce and Industries Minister Piyush Goyal last month where they reportedly discussed their entry to the Indian market.

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