Elon Musk’s Starlink Agrees To India’s Security Demands Amid Race For Satellite Spectrum—Here's All About It

Elon Musk's Starlink, a satellite broadband provider, has reached an "in-principle" agreement to align with the Indian government’s data localisation and security guidelines—a significant move as these requirements have been a key sticking point between the two.

This development arises amid consultations by the Telecom Regulatory Authority of India (TRAI) with stakeholders to finalize the spectrum allocation process for satellite services, a contentious issue for both Indian and global firms.

Simultaneously, the United States (US) president-elect Donald Trump has hinted at a significant role for Musk in his administration. Musk, who endorsed Trump and raised funds for his campaign during the election run-up, is expected to have influence in the White House. Sources suggest that this could offer Starlink greater leverage for its satellite internet operations in India.

In recent meetings with the Department of Telecommunications (DoT), Starlink "in principle" committed to meeting localisation and security requirements, a critical prerequisite for obtaining a satellite broadband services licence or GMPCS (Global Mobile Personal Communications by Satellite) licence, sources reported. However, the company has yet to formally submit its agreement on these conditions.

As per India's security guidelines, satellite communications providers are mandated to store all data within the country—a requirement that must be met to receive DoT’s operating licence. Starlink may also need to demonstrate methods for intelligence agencies to intercept data if required.

The Telecommunications Act 2023 mandates administrative allocation of satcom spectrum, a process that telecom operators like Bharti Airtel, Reliance Jio, and Vodafone Idea argue should ensure a level playing field with terrestrial services.

Earlier this year, the DoT sought additional information from Starlink, specifically regarding its data storage practices, shareholding structure, and any associations with U.S. security agencies. The company was also required to comply with India’s geographical coverage map and provide detailed coordinates of terminals near border areas.

The Indian National Space Promotion and Authorization Center (IN-SPACe) estimates that India’s space economy could grow to $44 billion by 2033, capturing approximately 8 per cent of the global market, up from around 2 per cent today.

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