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Latest BL Explainers | The HinduBusinessLine

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BL Explainer: Why is Starlink struggling to enter the Ind...
Vallari Sanzgiri · 2026-08-20 · via Latest BL Explainers | The HinduBusinessLine

Elon Musk’s satellite communication services company Starlink has approached IN-SPACe, yet again, for the authorisation of its larger satellite constellation to function in India. While the space regulator considers and reconsiders Starlink’s submissions, trouble mounts for the company as Jio comes forward with plans to dive into the satcom space, licence in hand. This danger looms aside from longstanding hurdles for Starlink in the form of geopolitical tensions, national security concerns and a price-sensitive market.

Here’s the breakdown of Starlink’s status in India as of now.

Why has Starlink approached IN-SPACe for the second time?

Starlink approached space regulator Indian National Space Promotion and Authorisation Centre (IN-SPACe) to submit a fresh authorisation request for its next-generation Gen 2 satellite constellation. This will allow the company to provide direct-to-device services. However, so far Starlink’s requests have been denied over security concerns as well as conflicts with spectrum and other regulatory norms.

Why hasn’t Starlink gone live in India, four years after its first attempt? 

Starlink has wanted to set up operations in the Indian market for a while. The licensing approval for commercial satellite operations took until 2025 when Starlink secured GMPCS licence. Starlink also forged retail distribution and backhaul partnerships with Reliance Jio and Bharti Airtel. However, the company cannot roll out services until spectrum is allocated and final security and other clearances are in place. The government issued licences and “normative” spectrum assignments to Starlink, Jio and OneWeb in February 2026. However, the actual price for that spectrum is still pending from the government’s side.

What are the latest challenges for Stalink in the authorisation approval process?

Until recently, Starlink had no viable competitor in the Indian market. However, Reliance Jio, in June, announced plans to launch its own satellite constellation with reports of an application for a 1,650-satellite constellation. According to NewStreet research, the government is likely to back Jio if it enters the space, in turn delaying Starlink. The other aspect is the national security concern, where industry experts estimate geopolitical developments to have soured Starlink’s chances of getting licensing approvals in India, even as the company rubbishes “unsubstantiated claims” of a regulatory freeze.

Another challenge is the price-sensitive nature of Indian users that are reluctant to pay the tariffs Starlink would need to enforce to make good on its investments in India. Brokerage firm Bernstein had said that Starlink’s pricing may be too steep for a cost-conscious country like India.

Why is India an important market for satcom players?

India is an attractive market for satcom players, with more than 200 million Internet users in rural areas. The government appears to be pushing for the service as well with industry stakeholders speculating India witnessing a tidal wave of satcom services from new entrants. Heavyweights like Bharti-backed Eutelsat OneWeb, Reliance Jio-SES, Elon Musk’s Starlink and Amazon Kuiper are actively pursuing full approvals and spectrum for launch of Low Earth Orbit (LEO) services.

How will Starlink’s entry impact the Indian market?

Leaders like Lt Gen AK Bhatt (retd), Director General, Indian Space Association (IspA) and TV Ramachandran, President of the Broadband India Forum, stress that satcom services can overcome the digital divide in difficult geographies where the cost of laying fibre is too high. In urban areas, it is useful for backhaul services, for additional capacities. However, the price-constraints in India make Starlink’s entry somewhat difficult. Further, the lack of a framework beneficial for foreign satellite operators also complicates the situation.

Published on August 20, 2026