Starlink and Eutelsat OneWeb are facing delays in launching commercial satellite broadband services in India as they work to meet the country’s security and compliance requirements. 

The companies have obtained the required Global Mobile Personal Communication by Satellite (GMPCS) licences, but final approvals remain pending as the Ministry of Home Affairs and security agencies seek additional safeguards for foreign-controlled satellite networks.

The main issue is related to national security and control over satellite communication networks. According to officials cited by Moneycontrol, companies holding GMPCS licences must demonstrate that they can meet all prescribed security conditions before receiving final approval to start commercial operations. 

The government is particularly examining how foreign satellite networks handle data, lawful interception and the routing of communications.

The delay is significant because satellite broadband is expected to improve internet access in areas where traditional fibre and mobile networks are difficult or expensive to deploy. Low-Earth-orbit satellite networks can provide connectivity across remote and underserved locations without requiring extensive terrestrial infrastructure.

For Starlink, which is operated by SpaceX, the regulatory process has already involved several stages of scrutiny. The company has been seeking to enter India’s broadband market for years, while its global satellite network has expanded rapidly. 

However, approval in India depends not only on the technical capability of the network but also on its ability to comply with India’s specific security framework.

Eutelsat OneWeb, backed by Bharti Enterprises and other shareholders, faces similar requirements. OneWeb has a different business model from Starlink, with a stronger focus on enterprise, government and telecom partnerships, but its satellite network is also subject to India’s security and licensing conditions.

The developments also affect India’s broader satellite communications industry. Reliance Jio’s satellite venture is another major player awaiting regulatory clearances, meaning the delay could affect the timing of commercial satellite broadband competition in India. Industry reports have previously highlighted security clearances as a key hurdle for satellite internet providers.

The government is taking a cautious approach because satellite networks can operate across borders and involve infrastructure controlled by companies headquartered outside India. 

Ensuring that Indian authorities can monitor communications when legally required and that sensitive data is handled according to domestic requirements has therefore become an important part of the approval process.

The delay could give domestic telecom operators and satellite ventures additional time to strengthen their market position. At the same time, slower entry by global satellite operators could postpone wider consumer access to satellite broadband and limit competition in the early stages of the Indian market.

Discover the next big investment! Tradz by EquityPandits’ IPO screener helps you identify promising initial public offerings. Download Tradz by EquityPandit and get ahead of the curve! Sign Up Now & Find Your Next IPO Gem!