Elon Musk’s Starlink, the ambitious satellite internet venture, faces a potential delay in securing its license for launching satellite communication (satcom) services in India. The Department of Telecommunications (DoT) is currently seeking clarity from the Department for Promotion of Industry & Internal Trade (DPIIT) regarding mandatory ownership disclosure details, which could impact Starlink’s timeline for initiating services in the country.
The Ownership Conundrum: DPIIT’s Amendment in 2020 Raises Questions
In 2020, DPIIT introduced an amendment to the foreign investment policy, necessitating government approval for declarations of complete shareholding details, particularly in cases of investments from countries sharing borders with India. This amendment poses a challenge for Starlink, as the DoT now seeks advice from DPIIT on whether approvals can be granted based on the available declaration or if a complete disclosure is imperative for issuing the Global Mobile Personal Communication by Satellite Services (GMPCS) license.
Starlink’s Privacy Stance: Refusal to Disclose Full Shareholding Details
Starlink, a venture under SpaceX, Elon Musk’s aerospace company, has declined to disclose the full shareholding details of SpaceX, citing its unlisted status and invoking US privacy laws. The company has provided a declaration stating that none of its investors are from countries sharing a land border with India. However, this stance has prompted the DoT to seek further clarification from DPIIT.
Parliament’s Recent Move and Industry Dynamics: Impact on Starlink
The recent passage of the Telecommunication Bill 2023 by the Indian Parliament adds another layer of complexity. The bill opts for the administrative route for allocating satellite communication (satcom) licenses, exempting satcom players from traditional bidding processes. This shift may have implications for major players in the industry, including Starlink, which applied for a DoT license in 2022 to introduce satellite-based broadband services in India.
Current Satcom License Landscape: OneWeb, Jio Satellite Communications, and the Entry of Starlink
At present, Bharti Group-backed OneWeb and Jio Satellite Communications, in partnership with Luxembourg-based SES, hold satcom licenses. Starlink’s entry into this landscape was anticipated after it applied for the DoT license in 2022, followed by high-level discussions between company officials and government authorities in September 2023.
