Elon Musk's company Starlink's plan to launch satellite internet service in India may be stuck for the time being. Due to national security concerns, the government has started scrutinizing the company's investment proposal more strictly. According to reports, this matter is not only technical but also related to security and geopolitical situation. For this reason, Starlink may have to wait longer to start its services in India.
According to ET's report, Starlink's Foreign Direct Investment (FDI) application is currently on hold. The government has made it clear that unless satisfactory answers to all the questions are received, it is difficult to give approval. According to officials, questions have also been raised on cross holding and technical aspects in the company's parent organization SpaceX. Apart from this, national security agencies are alert that if the network falls into wrong hands then it can be misused. This is the reason why security clearance is still pending and this remains a major hurdle.
The main focus of the government is on national security because the satellite communication system works beyond the geographical boundaries of the country. Recent global developments such as conflict in West Asia and news of the use of Starlink terminal in Iran have increased the concern of Indian security agencies. For this reason India does not want to take any kind of risk. Officials believe that misuse of such technology can cause serious problems in any possible war or emergency. Therefore, the government wants to move ahead only after thorough investigation and trial of the network.
Starlink has already received global GMPCS license and approval from the Indian Space Agency in Space, but despite this the services have not been started. The reason for this is that spectrum allocation and FDI approval have not been completed yet. According to the rules, 100 percent FDI is allowed in satellite companies in India, but government approval is required for more than 74 percent stake. There is also a need for clarity on the rules related to cross holding and Indian subsidiaries. For this reason, the launch of Starlink in India remains uncertain at present.
