With SpaceX’s Starlink professionals working toward regulatory approval in India, analysts predict that this victory will not only redefine the parameters for satellite broadband companies but will likely provide a foothold for future expansion into other emerging markets. It also has the potential to add a million subscribers annually. However, this will not be easy for Starlink, as there are many hurdles before regulatory approvals are obtained. It faces stiff competition from well-established players like Eutelsat and SpaceSail of China.
Hurdles by the Government and Industry
The approval process for Starlink in India has been long, stale, and quarrelsome. It has been caught in a regulatory complaint on the issue of spectrum allocation since 2022, rivaling the giants of Indian telecom such as Mukesh Ambani’s Reliance Jio and Sunil Mittal’s Bharti Airtel. The crux of the argument was whether the satellite broadband spectrum should be auctioned, favoring the existing telecom providers, or allocated, federally, to new entrants like Starlink. Administrative allocation favored by the Indian government in October provided a massive hurdle clearance for SpaceX.
With an unexpected twist, Jio and Airtel recently entered separate agreements with SpaceX, permitting Starlink services into the country. The industry insiders assert that these partnerships would pave the way for Starlink’s approval from the regulator later. This happened months after Prime Minister Modi met with Musk in Washington, an interaction that may have smoothed regulatory pathways for the satellite internet venture.
Strategic Significance of India
This signifies a strong potential for Starlink, not just in terms of revenue but also as an important strategic ground for its business model in emerging markets. Independent satellite specialist Davis Mathew Kuriakose said,
“Starlink securing the contract serves both as a strategic PR victory and a demonstration that it has successfully navigated challenges that seemed insurmountable for most other operators. From Starlink’s perspective, India is not only a credibility boost but also a crucial test of its economic feasibility in emerging markets.”
The potential market in India is huge, with over 700 million people without any reasonable broadband access. One senior executive said,
“India’s satellite internet market is just coming up, with a potential addressable market of some 700 million customers. Starlink gets a seat at the table to influence how that market develops.”
Vivek Prasad, principal analyst for space and satellite at consulting firm Analysys Mason said,
“There’s always going to be a subset of the market willing to pay a premium for convenience. India is an aspirational market, and the brand value of having a Starlink connection is also an added edge.”
Implications of the Global Satellite Internet Industry
Starlink is operational in over 120 markets worldwide, many of which present differing regulatory obstacles. An approval in the Indian arena settles in favor of its model to operate through governments and telecom giants in highly regulated markets, thereby giving it an edge against competitors who are exploring the region. Three industry personnel, who spoke off the record due to business sensitivities, emphasized that Starlink in the country could place itself at the beginning of shaping India’s entire satellite broadband industry.
Starlink’s entry is being welcomed by the SatCom Industry Association India, which rightly pointed out that its presence may trigger the economic engine. The industry body said,
“This will fuel employment growth in satellite network operations, ground stations, equipment manufacturing, and rural broadband services, while enhancing the global competitiveness of Indian space startups collaborating with international players.”
The approval or rejection of Starlink’s application could therefore signal much beyond the confines of Starlink. The eventual outcome will center on the whole idea of the integration of satellite broadband for developing countries. It may become the case study for subsequent expansions into Latin America, Africa, and Southeast Asia. The question is not if Starlink can enter India, but if it can endure and grow in a cutthroat market with changing policies. The result will determine Starlink’s fortune and the fate of the broader segment of global satellite internet.
