Why hasn't Musk's Starlink yet got satcom licence in India? Telecom minister says...
- by Firstpost
- Nov 12, 2024
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Union Telecom Minister Jyotiraditya Scindia on Tuesday said India will be more than happy to give licence to Starlink, the satellite internet service operated by Elon Musk’s SpaceX, provided the company meets all required security conditions
Union Telecom Minister Jyotiraditya Scindia
Union Telecom Minister Jyotiraditya Scindia on Tuesday said India will be more than happy to give licence to Starlink, the satellite internet service operated by Elon Musk’s SpaceX, provided the company meets all required security conditions.
Starlink has yet to meet India’s security regulations, and its licence for satellite communication services will be granted only after it fulfils all the necessary requirements.
“We are more than happy to give them (licence) if they (Starlink) comply with all the conditions. You have to look at it from a security perspective, making sure that all security concerns are addressed. When they do that we will be more than happy to give it. Obviously, they are in the process of doing it,” PTI quoted Scindia as saying.
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The government has granted licences to Bharti Group-backed OneWeb and the Jio-SES joint venture, Jio Satellite Communications, but both are awaiting spectrum allocation before starting operations. Pricing and rules for spectrum allocation are still under review.
According to PTI, citing sources, the Telecom Regulatory Authority of India (Trai) is expected to finalise its recommendations on spectrum allocation by December 15. The government will then assess Trai’s recommendations before deciding on spectrum distribution, which will enable satellite-based broadband services in India, added the report.
When asked about the status of the Rs 24,700 crore bank guarantee waiver sought by Vodafone Idea, Scindia said any decision of the government will not be company-specific, albeit it will have an impact on the entire sector.
“We have four players in the market as we speak, which is also very necessary from the sectoral point of view. Suffice to say India has probably the highest number of national telecom players compared to any other country. Bank guarantee waivers have already been given post-2022 auction. Any step that the government takes will be company-specific. It will be a sectoral step,” Scindia was quoted as saying.
The DoT has asked the telco to submit bank guarantees as an assurance for the spectrum payment of Rs 24,747 crore due in September next year.
As per norms, bank guarantees need to be submitted at least one year before the payment due date.
According to sources, the DoT has also reached out to the finance ministry on the issue of giving exemption to telcos from submitting bank guarantees for spectrum payment dues. VIL has sought relief, citing the spectrum auction rules of 2022 and 2024, under which the requirement for providing bank guarantees for the annual instalments has been removed. It has earlier cleared about Rs 16,000 crore interest obligation on the deferred payment and offered the government equities in the company.
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