India Asks For More Details From Elon Musk's Starlink For Satellite Internet Approval: Report

India has asked Elon Musk-owned Starlink to give more details on data transfer and storage as the satellite internet provider awaits permission to offer services in the South Asian country.

Starlink, SpaceX's satellite internet venture, has sought approval for a global mobile personal communication by satellite services (GMPCS) license to offer broadband-from-space services in the country. India's Ministry of Home Affairs is evaluating Starlink's application for security-related checks and other concerns.

The ministry has scheduled a meeting with Starlinks executives this week to make sure Indian data traffic does not go outside the country, Economic Times reported.

"The company will be a license holder in India and has to follow the norms. For security concerns, the data has to stay in India," the report said, citing an official with knowledge of the development.

If Starlink fails to provide the necessary information, the satellite internet service has to give an undertaking of unconditional compliance to get a GMPCS license.

Starlink reportedly told the Indian government it follows international regulations as its satellite constellation was global. However, the government wants the data to be restricted within the territory.

Starlink is the third company to apply for a license to start satellite-based internet services in India. OneWeb, backed by Indian telecom carrier Bharti Airtel, and billionaire Mukesh Ambani's Reliance Jio have already received GMPCS licenses from India's telecommunications department.

After getting approval, Starlink will have to wait for spectrum allocation from the telecommunications department. OneWeb and Reliance Jio's satcom spectrum are already on the waitlist.

This is not the first time an Elon Musk-backed company has attempted to mark its presence in India. In 2021, the Indian Telecom Ministry pulled Starlink for taking advance money from subscribers for services without receiving a license from the authorities. Starlink was also asked to refund the money to approximately 5,000 customers who pre-ordered its services in India.

India allows foreign companies to set up infrastructure such as earth stations and gateways to offer satellite-based internet services in the country. However, they have to get approval from the National Space Promotion and Authorization Center (IN-SPACe), an autonomous regulatory body, to establish their business.

India has a massive potential in the satellite internet market, with the number of users estimated to increase by almost 6x to reach two million by 2025, according to a report from Indian credit rating agency ICRA.

Last year, India concluded the pilot testing of its BharatNet project, backed by state-owned Bharat Broadband Network, in the Northeastern state of Arunachal Pradesh. It aims to connect 7,000 villages through satellite internet.