Last week, Starlink secured the crucial Global Mobile Personal Communication by Satellite (GMPCS) licence, paving the way for its commercial operations in India. This operational licence carries significant implications across various domains for communication services in the country. Let’s explore what this means for India’s digital landscape.
1. About Starlink
Operated by Starlink Services, a wholly-owned subsidiary of Elon Musk’s American aerospace company SpaceX, Starlink is a satellite internet constellation providing coverage to approximately 130 countries and territories. SpaceX began launching Starlink satellites in 2019, and as of May 2025, the constellation comprises over 7,600 mass-produced small satellites in Low Earth Orbit (LEO). These satellites communicate with designated ground transceivers and collectively account for 65 per cent of all active satellites. Starlink’s presence enables India to adopt cutting-edge LEO satellite technology without requiring extensive ground infrastructure.
2. Positive implications
Satellite services are poised to significantly enhance connectivity and bridge the digital divide, particularly in rural and remote areas where terrestrial infrastructure is unviable. This will support vital sectors like education, healthcare, and agriculture. LEO satellites offer high bandwidth and low communication latency, and critically, provide backup communication during natural disasters when ground networks fail. For instance, in flood situations, such as those currently affecting the Northeastern States, satellite services could have dramatically expedited information flow and response efforts. Furthermore, this connectivity will empower Micro, Small, and Medium Enterprises (MSMEs) in remote regions by boosting productivity and attracting tech investments.
3. Competition and innovation
Starlink’s acquisition of the GMPCS licence was widely anticipated. Homegrown telecom companies like Bharti Airtel and Jio Satellite recognise Starlink as a formidable competitor, especially concerning pricing. This could trigger a tariff war similar to what Reliance Jio initiated in 2016 with its disruptive 4G launch. While offering free services is unsustainable, companies might explore bundling services and creating pocket-friendly packages, given India’s price-sensitive market. Despite India having some of the world’s cheapest telecom tariffs, operators have struggled to raise prices significantly. While exact tariffs remain speculative, satellite services in India are likely to cost several thousand rupees monthly.
4. Challenges and concerns
Although the government has clarified that satellite spectrum will be administratively allocated to support national goals like Digital India and BharatNet, the Telecom Regulatory Authority of India (TRAI) and the Department of Telecommunications (DoT) are still finalising pricing. TRAI recently submitted its recommendations on pricing, terms, and conditions to the DoT for consideration. Additionally, Starlink faces several operational hurdles in India, including compliance with data localisation, stringent security norms, and infrastructure sharing requirements, all of which demand careful navigation. Strict adherence to Indian security protocols is paramount, especially given global concerns around satellite network surveillance.
5. Local partnerships
As companies strategise on pricing, analysts anticipate Starlink may offer subsidised plans for rural India, potentially forcing competitors like Bharti (Airtel)-backed Eutelsat Oneweb and Jio Satellite Communication to follow suit. Notably, in March 2025, Starlink partnered with both Airtel and Reliance Jio to make its solutions available through their retail outlets and online storefronts. Airtel and Jio stores nationwide will not only stock Starlink equipment but also establish mechanisms for customer service, installation, and activation. Looking ahead, Starlink may also participate in the “Make in India” program by potentially manufacturing local terminals to reduce costs.
6. Overall impact
Starlink’s entry marks a significant milestone for India’s digital transformation, particularly for unserved regions. While it promises to accelerate universal broadband access and foster competition, its success hinges on resolving spectrum allocation issues, ensuring affordability, and meeting regulatory requirements. If implemented effectively, Starlink’s presence could position India as a global leader in integrated satellite-terrestrial connectivity, especially as the country strives to lead in 5G and 6G services worldwide.