Reliance Jio to soon get new competition? Elon Musk's Starlink agrees to data localisation rules: Report

Elon Musk’s satellite internet company, Starlink, is closer to getting approval to operate in India after agreeing to follow some important government rules, according to a report by Moneycontrol. These rules require companies to keep all their data stored within India and to allow government access if needed for security purposes. 

Starlink needs a specific licence, called the GMPCS licence, to provide satellite-based internet services in India. The Department of Telecommunications (DoT) requires companies to meet strict data localisation rules before giving out this licence. According to the report, Starlink has agreed “in principle” to follow these rules, though it hasn’t yet provided an official agreement.

Elon Musk’s recent support for US President-elect Donald Trump may help Starlink’s global plans. Trump has hinted at giving Musk a role in his administration, which could indirectly benefit Starlink as it looks to expand worldwide, including in India.

Starlink applied for the GMPCS licence in October 2022 and has also applied to India’s space regulator, IN-SPACe, for additional approvals. IN-SPACe recently asked Starlink and Amazon Kuiper, a competing satellite provider, to provide more information to finalise their approvals. At the same time, another regulator, TRAI, is working on rules for pricing and distributing satellite spectrum—the radio frequencies that companies need to provide internet from space. TRAI’s final guidelines are expected by December.

Indian telecom giants like Reliance Jio, Bharti Airtel, and Vodafone Idea are concerned about Starlink and other international satellite providers. They say these companies should have to buy spectrum through auctions to ensure fair competition, especially in urban areas where satellite internet would directly compete with mobile internet. 

Starlink argues that satellite internet should be treated differently from traditional telecom networks and that satellite spectrum should be allocated without an auction.