Tuesday, 02 January 2024 12:17 GMT

Elon Musk's Starlink Gets Licence After Two-Year Wait, Moves Closer To Launch: Reports


(MENAFN- AsiaNet News)

After a two-year wait, Elon Musk's Starlink has received a key approval from the Indian government, allowing it to move forward with its satellite internet services in the country. Sources told PTI that the Department of Telecommunications (DoT) has officially granted the required licence to operate satellite communication services in India.

This approval clears one of the biggest regulatory hurdles that had delayed Starlink's entry since it first applied for permission in 2022.

Third player in India's satellite internet race

With this approval, Starlink becomes the third company to receive such a licence in India, joining OneWeb (backed by Bharti Enterprises and Eutelsat) and Reliance Jio's satellite unit. All three are preparing to roll out high-speed satellite internet services, particularly targeting remote and rural parts of the country where traditional fibre and mobile networks are often unreliable or absent.

A turning point in India's internet connectivity push

Experts see Starlink's entry as a significant moment in India's digital growth, especially for villages, hilly regions, and far-flung areas. Satellite internet can bridge the digital divide in such regions by offering faster, reliable internet without needing expensive physical infrastructure.

Starlink has already launched services in neighbouring countries like Bhutan and Bangladesh, offering speeds between 25 Mbps and 110 Mbps. If similar pricing is applied in India, it could offer affordable, high-speed internet to users who have long faced connectivity challenges.

TRAI backs Starlink over spectrum allocation

One major point of debate recently was the method of allocating satellite spectrum. Reliance Jio had pushed for auction-based allocation, similar to mobile networks, while Starlink advocated for direct administrative allocation. The Telecom Regulatory Authority of India (TRAI) backed Starlink's view, recommending that spectrum for satellite internet should be assigned without auction to ensure wider access and fair competition.

TRAI also proposed a 4% levy on the adjusted gross revenue (AGR) for spectrum usage-something Starlink and others will have to factor into their business models.

While the DoT has now issued Starlink's operating licence, final clearance from IN-SPACe (Indian National Space Promotion and Authorisation Centre) is still awaited before commercial rollout can begin.

Services already live in Bhutan, Bangladesh

In Bhutan, Starlink offers two monthly plans:

  • Lite Plan at NU 3,000 (approx ₹3,100), with speeds between 23-100 Mbps
  • Standard Plan at NU 4,200 (approx ₹4,300), offering 25-110 Mbps

In Bangladesh, users pay a one-time cost of about ₹33,000 for the Starlink kit and a monthly fee of ₹4,200. With similar pricing expected in India, Starlink could offer a competitive and efficient option for users currently under-served by traditional ISPs.

What's next?

The final green light from IN-SPACe is expected soon. Once that happens, Starlink can officially launch services in India, possibly starting pilot projects in rural zones before expanding nationwide.

Industry observers believe the launch could also spark greater competition and innovation in India's internet sector, driving down costs and improving access for millions.

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