India has frozen approvals for Starlink, Elon Musk's space-based internet service, to begin operations within the country since there are concerns over its using of its satellite terminals in the Iran war, as per Bloomberg.
Final clearances for Starlink have been withheld by security agencies of the central government, the report revealed. Concerns stem from the fact that Starlink terminals were used in the conflict between the US-Israel combine and Iran. New Delhi is now afraid that there might be issues in its ability to control a US-based internet operator during times of geopolitical tensions. This comes after reports that Starlink terminals were being used in the Middle East conflict despite the company not having license to operate in Iran.
This decision comes days before SpaceX is expected to list the company on Nasdaq, which could be the largest initial public offering (IPO) in history. A 12 June Nasdaq listing is being targetted at a valuation of $1.75 trillion, Bloomberg has reported. Starlink, the internet service providing arm of the company, is its primary revenue engine and is crucial to its massive valuation.
This setback now highlights the fact that Starlink's global expansion is far from uniform.
Starlink is shut out of China, and now India, which is the most populous nation in the world and one of the largest underserved broadband markets, has also fallen off its platter.
The impasse has stopped a satellite-spectrum pricing proposal which is needed for a commercial launch, either by Starlink or its Indian competitors. The framework of the proposal has been finalised by the Department of Telecommunications, but has not been sent to the Union Cabinet for approval, the report revealed quoting people in the know.
The Elon Musk-headed company secured Global Mobile Personal Communication by Satellite license in India around a year ago, thus making its path to enter into agreements and prepare for operations clear. However, Indian officials have been raising questions and seeking compliance measures. Its security clearance remains pending since Starlink has not yet explained how, considering its global footprint and ownership based out of the US, it gives a guarantee to comply with Indian security requirements when geopolitical tensions arise.
As per the report, after the Iran war, India has adopted a stricter approach towards satellite communication services. Even domestic internet providers like Jio and Airtel, which have both partnered with satcom providers based out of Europe, are also facing stricter scrutiny of their deals.
Starlink, meanwhile, has been in communication with local authorities, and has submitted affidavits that claim it meets local requirements of data storage.
It has also set up infrastructure in India: around 10 gateways with a hub in Mumbai. Senior officials of the company has also met government officials and ministers in order to advance the process.
