Trump's Praise For Musk's Starlink: A Signal For India Telecom Giants

Donald Trump's victory speech after his thumping win in the US election was full of praise for SpaceX CEO and X boss Elon Musk. Describing Musk as an "amazing guy" and a "super genius", the 78-year-old Republican leader mentioned SpaceX Starlink, a telecom giant known for its capability to provide Internet connectivity to the remotest corners of Earth using satellite constellation technology. The President-Elect spoke about how Starlink proved to be a lifesaver in the aftermath of Hurricane Helene that hit parts of the US earlier this year.

Back in India, Musk's proximity to Trump and the US President's high praise for the SpaceX founder have sparked a buzz -- is Starlink coming here? Musk has been trying to enter the Indian space for a while now, but regulatory frameworks here have proved to be an obstacle. With the Indian government's recent announcement on how it plans to allocate satellite spectrum and the Trump administration likely to back up Musk, Starlink's entry may be a matter of time.

What's Different About Starlink

Starlink uses thousands of satellites in low earth orbit to provide high-speed internet connectivity. The satellites beam Internet data through radio signals. Ground stations broadcast signals to orbiting satellites and they relay the data back to users. This form of internet service does not require overhead or underground wires stretching for miles. This might not make a huge difference in urban areas where traditional broadband Internet is available and users have several options to choose from. Starlink scores in remote areas where traditional services such as optical fibers are unviable and hence, unavailable. Launched in 2019, Starlink already has over 4 million users worldwide. In a country like India, such a service can prove a game-changer in tackling the digital divide.

Starlink's India Push

Elon Musk has been trying to push Starlink into the Indian market since 2021. SpaceX had even started inviting pre-orders, before the Centre intervened and asked the company to meet regulatory requirements first. "For rendering satellite-based services in India, requisite license(s) from the Department of Telecommunications, Government of India are required. It is hereby informed to the public at large that the said company has not obtained any license/authorization for rendering satellite-based internet services that are being booked on their website," the government said, asking SpaceX to comply with the country's regulatory framework.

However, a recent development has raised hopes. Last month, Communications Minister Jyotiraditya Scindia announced that the spectrum for satellite services would be allocated administratively and the cost would be determined by the telecom regulator. Musk welcomed the announcement and said SpaceX would do its best to "serve the people of India with Starlink".

The Home Players

If the government's new stance makes it easier for global players such as Starlink to provide satellite internet in India, it will set the stage for intense competition with the home players, primarily Mukesh Ambani's Jio and Sunil Bharti Mittal's Airtel.

Jio has stressed that the government must allocate the spectrum through auction to create a level-playing field. Mr Mittal, too, has said that satellite companies with urban ambitions must buy spectrum like telecom companies.

According to reports, Starlink has told regulator TRAI that the Indian telecom companies are pushing for reasonable pricing for their systems and lobbying for inflated rates for others. It argues that the home players have their business model, and not the interests of underserved communities, in mind.

The Indian telecom firms, however, argue that the rural connectivity plank is used by global players to get favourable terms for spectrum and that they will soon push to expand in urban areas, competing directly with the local service providers.