India has effectively frozen approvals required for Elon Musk’s satellite internet service Starlink to begin commercial operations in the country, amid concerns over the reported use of its terminals during the Iran conflict, Bloomberg reported, citing people familiar with the matter.
According to the report, security agencies under the Ministry of Home Affairs have withheld the final clearances needed for Starlink’s launch, raising questions about the government’s ability to exercise control over a US-based communications provider during periods of geopolitical tension.
Reports suggesting that Starlink terminals were used in the Middle East conflict despite the service not being licenced in Iran have heightened concerns within the Indian government, Bloomberg reported. Officials are said to be examining whether the company can ensure compliance with Indian security requirements when faced with competing demands from foreign governments.
STARLINK TO ANNOUNCE IPO SOON
The development comes at a crucial time for SpaceX, which is expected to price what could become the largest initial public offering in history through a Nasdaq listing targeted at a valuation of around $1.75 trillion. Bloomberg noted that Starlink is central to the company’s revenue growth story, making regulatory hurdles in major markets such as India particularly significant.
Security agencies have reportedly kept Starlink’s security clearance pending despite the company obtaining a Global Mobile Personal Communication by Satellite (GMPCS) licence in India nearly a year ago. While the licence allowed Starlink to prepare for operations and enter commercial agreements, it did not constitute final approval to begin services.
According to Bloomberg, Starlink had previously conducted security demonstrations before telecom authorities and a dedicated security review panel. However, Indian officials later sought additional clarifications and compliance measures.
WHAT DOES THE DELAY MEAN
Its security clearance remains pending until the company can explain how it would guarantee compliance with India’s security requirements despite its global operations and US ownership, the report said.
The delay has also reportedly stalled a broader satellite-spectrum pricing proposal that is required for commercial satellite communication services in India. Bloomberg reported that while the Department of Telecommunications has finalised the framework, it has yet to be sent to the Union Cabinet for approval.
The Ministry of Home Affairs, the Ministry of Communications and SpaceX did not immediately respond to requests for comment, Bloomberg reported.
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