New Delhi/IBNS: Elon Musks Starlink is making progress with its license application in India, with Telecom Minister Jyotiraditya Scindia confirming on Tuesday (Nov. 12) that the Elon Musk-led company is working to fulfill government-mandated security requirements.
These compliance steps are crucial for Starlink to gain approval, as Scindia emphasized the need to address security concerns fully.
Once they check all the boxes, theyll get the license, he noted.
On satellite spectrum pricing, Scindia deferred to the Telecom Regulatory Authority of India (TRAI) for future clarification.
Recent meetings with the Department of Telecommunications (DoT) have seen Starlink agreeing in principle to adhere to regulatory guidelines, an essential move towards securing a satellite broadband, or GMPCS, license.
The companys application with IN-SPACe has also progressed, with further details requested for final review.
Currently, Starlink operates a satellite network providing low-cost internet to remote areas and has long-term plans to expand its constellation to 42,000 satellites from its current count of around 6,500.
In India, similar satellite licenses have been granted to Bharti-backed Eutelsat OneWeb and Jio Platforms Orbit Connect India, in partnership with SES.
Minister Scindia also addressed other telecom matters, including a pending decision on waiving bank guarantees for telecom operators, particularly cash-strapped Vodafone Idea.
Any relief will be sector-wide, Scindia clarified, noting that only BSNL has received specific support.
Indias telecom industry has seen substantial growth in recent years, with four major players active in the market.
Scindia remarked that the range of options available to consumers is broader in India than in most countries, ensuring competition and choice.
The DoT recently shared a draft Cabinet note, backed by the law and finance ministries, on waiving bank guarantees for spectrum bought up to 2022.
If approved, this measure could ease the financial burden on companies like Vodafone Idea, which faces a requirement of Rs 27,000 crore in bank guarantees in the coming months.
In August, the Cellular Operators Association of India (COAI) urged Telecom Secretary Neeraj Miital to remove these bank guarantee requirements, citing potential improvements to cash flow and network investment.
Minister Scindia also commented on the financial situation of Mahanagar Telephone Nigam Limited (MTNL), which owes significant repayments on local-currency bonds guaranteed by the government.
With outstanding debt of Rs 42,680 crore, MTNL is expected to negotiate loan settlements with banks before its operations transfer to BSNL.
However, the government has indicated it will not fully intervene in MTNLs recovery but will continue to cover interest payments on sovereign-guaranteed bonds.
Further support, monetization, or mergers appear unlikely for the heavily indebted MTNL.
