Starlink's India Launch Plans Said to Face Regulatory Hurdles Over Security Concerns Linked to Iran Conflict

India has reportedly put the approval process for Starlink's commercial rollout on hold due to concerns about the use of its satellite terminals during the conflict in the Middle East. The Elon Musk-led space-based internet service Starlink is a key driver of SpaceX's business and growth. It is a crucial time for SpaceX as the firm is expected to announce pricing for its highly anticipated Initial Public Offering (IPO) later this week. The listing is likely to be one of the largest IPOs ever.

Starlink Awaits Final Approval for Launch in India

Citing people familiar with the matter, Bloomberg reports that security agencies under the Ministry of Home Affairs of India have withheld the final approvals for Starlink to start operations in the country. Reports about Starlink terminals used in Iran, even though the service is not officially licensed, are the key reason for not approving. This has raised questions among Indian authorities about its ability to control a US-based operator during geopolitical tensions.

The setback comes during a crucial time for SpaceX, which is reportedly preparing for a major stock market listing on June 12 that could value the company at around $1.75 trillion (roughly Rs. 1.67 lakh crore). Starlink is a primary revenue source of SpaceX, and its slowdown in major markets such as India could affect its global growth plans.

The delay has also reportedly affected the government's satellite spectrum pricing proposal, which is required for any commercial services. The Department of Telecommunications (DoT) has reportedly finalised the framework, but it has not been sent to the federal cabinet for approval.

Starlink received a Global Mobile Personal Communication by Satellite (GMPCS) licence in India nearly a year ago, but this has only allowed the company to prepare for operations and sign agreements. It still needs additional regulatory and security clearances before launching services.

Further, the report adds that Indian authorities have been reviewing Starlink's security measures since last year, but its security clearance remains pending. Authorities have reportedly asked the company to explain how, given its global footprint and US ownership, it can guarantee compliance with Indian security requirements when geopolitical tensions generate conflicting demands from foreign governments.

The company is said to be working closely with Indian authorities. It is also building infrastructure in the country, including around 10 gateways and a hub in Mumbai. Company executives have also held discussions with government officials to push forward its launch plans. The increased scrutiny is also affecting domestic telecom operators like Reliance Jio and Airtel.