For Starlink, this vast, unserved market is a key opportunity, but tapping into it has meant tackling India’s strict regulations, pushback from terrestrial carriers, and potential security worries from the government.

SpaceX is forming a strategic partnership with India’s largest carriers, Reliance Jio and Bharti Airtel, to distribute Starlink terminals through their retail locations and integrate Starlink's network with Jio and Airtel’s cellular and fiber infrastructure. The deal aims to enhance connectivity across urban and rural India with these telecom giants providing customer support to Starlink subscribers, handling installation and troubleshooting. Beyond distribution, both carriers are expected to assist SpaceX in navigating regulatory requirements, as their partnerships are contingent on Starlink’s approval from the Indian government.

This announcement came after Elon Musk met with Indian Prime Minister Narendra Modi in Washington D.C. in January, after SpaceX had accepted critical demands from Indian Department of Telecommunications (DoT), including storing user data locally, granting intelligence agencies lawful access, allowing government audits of data centers, and complying with Indian encryption standards — clearing a major regulatory obstacle.

This collaboration signaled a détente between Starlink and India’s telecom giants, who have fiercely clashed over spectrum allocation for satellite internet providers like Starlink and Amazon’s Project Kuiper.

Globally, satellite spectrum is handled by the UN’s International Telecommunications Union (ITU) and assigned administratively since it’s shared, not exclusive. Auctions are rare, mostly for cellular networks needing sole control in an area. As Starlink eyed urban markets alongside rural ones — promising high-speed, reliable internet to businesses and affluent households frustrated by spotty service — it emerged as a direct rival to Jio and Airtel’s cellular and fiber networks. Jio, India’s top carrier, owned by billionaire Mukesh Ambani, called for rejecting the global norm and advocated for satellite spectrum auctions. 

“We don’t fear competition,” Jio’s spokesperson said. “It’s the satellite players who seem scared to compete fairly.”

Airtel, the second-largest carrier, owned by billionaire Sunil Mittal, initially backed administrative allocation but later reversed their position, aligning with Jio to demand auctions for urban spectrum while still supporting administrative allocation for rural areas.

Airtel’s chairman, Sunil Mittal, said “satellite operators targeting urban customers must secure a license, purchase spectrum, fulfill all obligations, and pay the required fees, just like everyone else,” referring to the exorbitant auction fees paid by terrestrial operators to secure rights to provide internet services which satellite operators don’t have to. 

Despite pouring over $9 billion into urban fiber infrastructure over the past decade, Jio and Airtel have struggled to provide consistent service. A 2023 survey found that more than half of their customers reported facing slow internet speeds and frequent disruptions, with resolution times often exceeding 24 hours. Starlink and Kuiper present a potential solution, offering superior quality and bandwidth that surpasses India’s top three carriers by 26%. Jio claimed that this creates an uneven playing field, citing its $23 billion in terrestrial spectrum auction costs — a burden satellite operators sidestep.

Yet, even as they pushed for auctions, both carriers were actively investing in satellite internet through partnerships with OneWeb (via Airtel’s parent company, Bharti Group) and SES (with Jio). Ironically, both secured government approval for these ventures via the administrative allocation process they had challenged, complicating their stance as they benefitted from the very system they sought to upend.

Despite their intense lobbying, the Indian government upheld this international standard, rejecting their calls for auctions.

“The satellite spectrum in the Ku band (around 14 GHz) and Ka band (27.1 to 31 GHz) is inherently shareable in nature, and therefore it is neither desirable nor feasible to allocate it through auction,” said Indian Communications Minister Jyotiraditya Scindia, adding "You can't auction something that is shared."

The extent of Jio and Airtel’s involvement with Starlink remains uncertain. Both Jio-SES and OneWeb have built substantial infrastructure, awaiting spectrum allocation to begin operations. Jio has showcased its network by connecting remote regions in Indian states of Gujarat, Chhattisgarh, Odisha, and Assam, while OneWeb has established data transmission hubs in western and southern parts of the country. Both assert they can begin services within weeks of receiving a go-ahead from the DoT.

In December 2024, the Indian army seized Starlink terminals in Manipur, a northeast state bordering Myanmar hit by ongoing riots. The devices belonged to banned insurgent groups from Myanmar, where Starlink is legally approved to operate, and had slipped across the porous border. Fears grew that militants could use Starlink to coordinate attacks, share real-time data by bypassing India’s internet blackouts, possibly even aiding those groups with encrypted communication.

Satellite phones are already heavily restricted in India primarily due to national security concerns.

That same month, the Indian Coast Guard intercepted a boat from Myanmar smuggling $4.2 billion in methamphetamine, equipped with Starlink Mini terminals used for navigation toward Indian islands. These incidents sparked alarm over satellite internet misuse in volatile areas, prompting the government to investigate whether Starlink functioned within India, especially near the Myanmar border in Manipur. Officials also pressed SpaceX for details on the seized terminals’ owners, but the company refused, citing data privacy laws.

Starlink insisted its service wouldn’t work in India without approval. “Starlink beams are turned off over India,” Elon Musk said, addressing claims of illegal use. A DoT investigation later confirmed no connectivity within India, though reports suggested it might have worked near the Myanmar border. Now, Starlink’s license application sits with the Ministry of Home Affairs and security agencies, under heavy scrutiny. 

Communications Minister Jyotiraditya Scindia emphasized, “We’re ready to grant them a license if they [Starlink] comply with all the conditions. You have to look at it from a security perspective, making sure that all security concerns are addressed. When they do that, we will be more than happy to give it”

SpaceX has long viewed India — the world’s second-largest telecommunications market — as a key target for Starlink. In 2021, Elon tweeted about the company’s ambitions, noting, “just figuring out the regulatory approval process.” Months later, Starlink outlined plans to launch services in India, starting with 100 free terminals for schools in New Delhi and nearby rural districts. The initiative aimed to support small and medium enterprises in remote areas needing reliable connectivity and healthcare facilities in rural regions requiring stable internet for telemedicine.

Starlink’s then-country director stated that over 80% of these terminals would target India’s 10 rural constituencies, offering a lifeline during natural disasters when terrestrial networks often fail.

The company opened pre-bookings to signal its intent, quickly amassing over 5,000 orders within a month. However, the Department of Telecommunications soon intervened, barring further orders and mandating refunds due to Starlink’s lack of a telecom license.

Indian regulations pose a steep challenge for satellite internet providers. Beyond security and data localization requirements, they must secure a Global Mobile Personal Communication by Satellite Services (GMPCS) license from the DoT, obtain approval from the Indian National Space Promotion and Authorization Center (IN-SPACe) to operate foreign satellites, establish local ground stations and gateways, and await spectrum allocation from the DoT — only then can beta trials begin.

Starlink’s pursuit stalled, with its GMPCS license application not filed until October 2022. Progress was slow; in the following months, the company met with DoT officials to address compliance and sought IN-SPACe approval for ground stations. Resistance from terrestrial carriers over spectrum allocation, coupled with security concerns tied to unauthorized Starlink use, further delayed the process. Yet, Elon and Modi’s recent meeting in Washington D.C., has hinted at an acceleration of bureaucratic approvals.

Even if cleared, challenges remain — India’s vast, underserved market demands affordability from a service priced for wealthier regions.

Starlink will need to adopt geographical pricing tailored to local needs as it has in regions with lower purchasing power. In Nigeria, hardware is priced at $365 with a $50 monthly fee, helping Starlink become the country’s second-largest internet service provider. In Kenya, they go a step forward by offering a $15/month hardware rental and a $30 monthly fee, removing hefty upfront costs. In Australia, where purchasing power is higher, Starlink charges $90/month but provides discounts for remote areas. India will require a similar adjustment to connect its millions.

Even Starlink’s reduced rates may seem high compared to India’s low cellular costs ($0.09/GB) and broadband fees ($5–$7 monthly), but its ability to reach the most isolated areas makes it a practical option. This is the most affordable satellite communication has ever been, driven by lower launch and manufacturing costs. Traditional satellite systems, often in geostationary orbit 35,768 kilometers above Earth, provided wide coverage but were prohibitively expensive to build and launch, delivering high latency (up to 600 milliseconds) and minimal speeds suitable only for basic tasks like email. Starlink’s approach is different, deploying thousands of satellites in low Earth orbit at 500–2,000 km for better bandwidth, lower latency, and broader reach.

Users connect via a small terminal pointed at the sky — no complex setup needed — and ongoing improvements to these terminals have further cut costs, enabling access to remote regions.

Starlink’s future in India depends on affordable pricing and meeting tough regulations. If it succeeds, it could bring fast internet to millions who’ve never had it, linking rural India to the digital world and proving satellite tech can bridge gaps where others can’t.