Starlink Receives India’s Final Regulatory Nod for Launch

General Studies Paper-3

Context

India’s space regulator INSPACe has granted a licence to Elon Musk-run Starlink to offer space-based internet services in the country.

About

• Starlink has been waiting since 2022 for licences to operate commercially in India.
• It would be the third company to receive India’s nod to enter the space after Eutelsat’s OneWeb and Reliance Jio.
• Starlink will now need to secure spectrum from the government, set up ground infrastructure, and also demonstrate through testing and trials that it meets the security rules it has signed up for.
• Starlink authorisation is to operate Gen1 constellation for providing satellite broadband capacity over India till 2030.

Regulation Landscape in India

• Licensing Framework under Indian Telegraph Act, 1885:
  • Section 4: Grants exclusive privilege to the Union government for establishing and operating telecommunication systems (including VSAT).
  • Section 7: Authorises the government to frame rules and conditions for such licences.
• Regulatory Oversight by TRAI (TRAI Act, 1997): Section 11: Lists TRAI’s functions:
  • Recommending licence terms and conditions.
  • Advising on spectrum management.
  • Ensuring level playing field and fair competition.
  • TRAI significantly influences Starlink’s operational framework through its regulatory recommendations.
• Telecommunications Act, 2023: Governs satellite spectrum allocation.
  • Allows administrative allocation of spectrum.
  • Imposes compliance on: Security obligations and Pricing norms.
• Space Sector Regulation: Satellite Communications Policy, 2000 regulates satellite use in India.
  • IN-SPACe (Indian National Space Promotion and Authorisation Centre) coordinates with private players like Starlink.
  • Ensures non-conflict with ISRO assets.
  • Aligns operations with national space priorities.
• Data and Cybersecurity Laws: Information Technology Act, 2000 governs cybersecurity and lawful interception.
  • Digital Personal Data Protection Act, 2023 regulates personal data handling, imposes data storage and encryption norms.
• National security compliance: Directives from the Ministry of Home Affairs and intelligence agencies must be followed.

Significance of privatization of space sector

• Cost Reduction: The profit-driven nature of private enterprises compels them to bring innovation and cut unnecessary costs.
• For example: Companies like SpaceX have revolutionized space economics through reusable rockets (e.g., Falcon 9), slashing launch costs dramatically.
• Lean Operational Models: Private firms operate with smaller, highly specialized teams. Fewer layers of hierarchy lead to faster decision-making and lower overhead costs.
• Employment & Self-reliance: Privatization generates jobs, supports modern technology adoption, and helps make the space sector self-reliant.

Steps Taken by Government to Strengthen Space Sector

• Space Sector Reforms (2020): Government allowed private sector participation, defining roles of IN-SPACe, ISRO, and NSIL.
• Space Vision 2047: Aims for Bharatiya Antariksh Station (BAS) by 2035 and an Indian Moon landing by 2040.
  • Gaganyaan follow-on missions & BAS first module by 2028.
  • Next Generation Satellite Launch Vehicle (NGLV) by 2032.
  • Chandrayaan-4 by 2027, to collect moon samples and demonstrate return technology.
  • Venus Orbiter Mission (VOM) by 2028, to study Venus.
• Indian Space Policy, 2023: Ensures level playing field for Non-Government Entities (NGEs) in space activities.
• Venture Capital Fund: Rs. 1000 crore fund for space startups under IN-SPACe over the next 5 years.
• SpaceTech Innovation Network (SpIN): SpIN is a one-of-its-kind public-private collaboration for start-ups and SMEs in the space industry.
  • Under the amended FDI policy, 100% FDI is allowed in the space sector.

Way Ahead

• Early and Structured Engagement: Starlink’s experience highlights the importance of early dialogue between technology firms and regulatory bodies.
  • Proactive engagement can preempt legal ambiguities and build mutual understanding between innovators and the state.
• National Security as a Pillar: Compliance with encryption norms, data localisation, and surveillance directives reflects India’s strong emphasis on digital sovereignty.
• Broader Significance for India’s Digital Future: As India positions itself as a global digital leader, the regulatory treatment of technologies like Starlink serves as a litmus test of its commitment to:
  • Transparency and predictability in governance,
  • Innovation-friendly ecosystems, and
  • Digital inclusion across geographies, a step towards bridging India’s rural-urban digital divide.