Following the receipt of a letter of intent (LoI) from the Department of Telecommunications (DoT), sources familiar with the matter revealed that SpaceX, the parent company of satellite internet provider Starlink, will begin investing in satellite communication (satcom) infrastructure.

With the LoI in place, SpaceX is authorized to start constructing the necessary ground infrastructure, including earth stations and gateways, which are crucial for supporting satellite-based broadband services. These facilities will serve as communication hubs connecting the orbiting Starlink satellites to the terrestrial internet network, facilitating high-speed internet access across expansive areas, including remote and underserved regions.

The LoI was issued after mandatory security clearances were obtained from the Ministry of Home Affairs, which is a requirement for all foreign satcom companies entering the Indian market. The clearance, often considered a major challenge, enables SpaceX to begin laying the technical foundation for its services. The company, which has already formed distribution partnerships with major telecom operators such as Reliance Jio and Bharti Airtel, can now proceed with investments while awaiting further permissions from the Indian National Space Promotion and Authorization Centre (IN-SPACe).

Simultaneously, Starlink is actively searching for locations to set up its earth stations, which is a critical step in ensuring service readiness. These ground stations will be essential for the uplinking and downlinking of data to and from satellites in low Earth orbit, guaranteeing reliable connectivity.

While the LoI moves SpaceX closer to its competitors, Jio and Airtel, who have already received all required regulatory approvals, the allocation of satellite spectrum remains an important step before commercial services can begin. After much discussion, the government decided that the DoT, rather than relying on spectrum auctions for terrestrial telecom, would directly allocate spectrum for satellite services.

The Telecom Regulatory Authority of India (Trai) is currently working on recommendations for spectrum pricing and distribution methodology. Once these recommendations are finalized, they will be reviewed by the DoT and sent to the Digital Communications Commission for further deliberation. If necessary, the matter will be forwarded to the Union Cabinet for final approval. According to telecom analysts, this entire process is expected to take approximately six to nine months.

As regulatory progress continues, SpaceX’s Starlink is steadily positioning itself to launch operations in India, a move that could significantly improve broadband access in the country’s rural and remote areas.

News source: Financial Express