India has introduced new rules for satellite internet services, making it harder for companies like SpaceX’s Starlink and OneWeb to operate in the country.
On May 5, India’s Department of Telecommunications (DoT) announced 29 new rules focused on national security. These rules apply to both new and existing satellite internet providers.
What the New Rules Say:
- Companies must store user data like call logs within India.
- They must follow Indian laws for monitoring and intercepting communications.
- Within five years of launching their services, satellite companies must buy at least 20% of their equipment from Indian vendors.
These changes come shortly after a violent attack in the Kashmir region, which increased tensions between India and Pakistan. The Indian government is now extra cautious about national security.
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Impact on Starlink and OneWeb
These new rules make it even harder for satellite companies to get approval in India.
- OneWeb, owned by France’s Eutelsat, has a license to operate but still hasn’t received permission to use the radio spectrum needed to start services.
- Starlink, owned by the U.S.-based SpaceX, is close to getting its license after years of talks, but the new rules could delay this further.
India has over 1.4 billion people — more than four times the population of the United States — so the country is a huge opportunity for satellite internet companies. However, many people in India have low incomes, which could affect the number of paying customers.
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According to Grace Khanuja, a strategy expert at Novaspace, Starlink could see massive growth in India once it clears these legal and technical hurdles. But her recent report predicts Starlink is unlikely to get full approval in India before the end of 2025.
Still, Starlink is growing fast and could reach 6.5 million active users globally by the end of this year. The growth is coming from customers using the service for homes, businesses, and travel.
