The company secured its Global Mobile Personal Communication by Satellite (GMPCS) licence in June 2025, roughly three years after first applying. It also received authorisation from the Indian National Space Promotion and Authorisation Centre (IN-SPACe) in July 2025. Yet commercial services remain offline. The reason is straightforward: security clearance and spectrum assignment are still pending. The Ministry of Communications has stated that security assessments must be completed before spectrum can be assigned to any licensee. Until that happens, Starlink's 20 gateway sites and hundreds of antennas sit idle, generating no revenue.
Is this normal? Yes, according to the government.
All three hold GMPCS licences, and all three await security clearance from the Home Ministry. The government has rejected Elon Musk's public allegations that "oligarchs" are blocking Starlink's entry, calling such claims "baseless and misconceived." The framework, it insists, is fair and non-discriminatory. The real bottleneck is the security review process, which has no public timeline and applies equally to everyone.
Starlink has already built substantial infrastructure in India. The company reports 20 gateway sites with hundreds of antennas, designed specifically to keep Indian user data within the country. This is not trivial infrastructure. Reports suggest the network would need at least 50,000 imported user terminals to serve its planned capacity. But here is the problem: none of this earns a rupee until the government gives the green light. Every month of delay means depreciation and operating costs on assets that are effectively stranded.
This creates a strategic dilemma.
That buys speed to market if clearance comes, but it also exposes the company to sunk costs if the process drags on. The company has not disclosed the capital deployed, so we cannot quantify the exact financial hit. However, the logic is clear: the longer the delay, the higher the price Starlink might need to charge to justify its investment. Musk has acknowledged that Starlink would have to adjust prices if Indian consumers found them too high. That suggests a tension between recouping sunk costs and competing in a price-sensitive market where fibre plans often start below INR 500 per month.
Reliance Industries is playing a different game. Its subsidiary, Jio Satellite Communications, received its GMPCS licence in October 2022, well before Starlink. Yet Jio has not pre-built a constellation on the same scale. Instead, the company says it is "evaluating" a sovereign low-earth-orbit (LEO) constellation of around 1,600 satellites. In the meantime, it leases capacity from global providers and builds ground stations. This staged approach limits upfront capital exposure while regulatory rules remain uncertain. The Jio Platforms red herring prospectus explicitly warns that the company cannot assure it will deploy satellite solutions on time, competitively, or at all. Other +1
Reliance's public response to Musk's allegations was measured but pointed. The company stated that it welcomes competition, including Starlink, and emphasised that Jio's own satellite services also await clearances. "At Reliance, we have never feared competition," the statement read. "We see it as the truest test of who serves the customer best." This is not just rhetoric. Jio entered the mobile market in 2016 with zero customers and grew to over 530 million users in a decade. The company knows how to scale. Its current stance suggests confidence in its distribution strength and regulatory compliance, rather than fear of Starlink's ready infrastructure.
A critical piece of the puzzle remains unresolved: how will satellite spectrum be priced? The Department of Telecommunications has approved a spectrum charge of 5% of adjusted gross revenue (AGR), but this awaits Union Cabinet approval. This levy would directly reduce Starlink's margins once revenue starts. For a company that might charge INR 2,500-3,500 per month in a market where fibre costs INR 500-1,000, every percentage point matters. The final spectrum framework will shape the economics for all players, not just Starlink.
Interestingly,
That stance contrasts with the administrative allocation route favoured by global satellite operators and ultimately chosen by the government in 2024. However, the Jio Platforms prospectus states that the company intends to seek satellite spectrum through administrative allocation. This apparent shift highlights the pragmatic flexibility needed to navigate India's evolving regulatory landscape. The final rules will determine whether satellite broadband becomes a niche premium service or a mass-market alternative. RHP
If regulatory barriers lift, Starlink's ready infrastructure poses a credible threat, but primarily in specific segments. Analysts estimate that even in an aggressive adoption scenario, Starlink might displace about 1.8 million fixed broadband connections. That represents roughly 6.3% of Jio's fixed broadband base of 28.6 million subscribers. The revenue at risk for incumbents is estimated at around INR 672 crore annually across all providers—a modest figure compared to Jio's consolidated revenue of INR 1.47 lakh crore in FY26. The real impact is likely to be in remote areas, enterprise connectivity, and backup services, rather than urban fibre markets. RHP
Jio has a potential offset: it is also a Starlink distributor.
This means Jio could earn distribution income even on connections that compete with its own broadband offerings. It is a classic hedge. If Starlink gains traction, Jio benefits as a partner. If Starlink struggles, Jio's own terrestrial network remains dominant. The relationship encapsulates the complex blend of cooperation and competition that defines this sector.
The diplomatic exchange between Musk and Reliance adds another layer. After Musk's public accusations and Reliance's firm rebuttal, the tone softened with a "Much appreciated" reply from Musk. This suggests that while public posturing grabs headlines, the underlying business logic may still allow for collaboration. The government holds the ultimate lever. Once security clearances are granted and the spectrum framework is finalised, the race truly begins. Starlink will need to translate its infrastructure readiness into competitive pricing. Jio will need to execute on its constellation plans while leveraging its massive distribution network.
For India, the stakes are high. Satellite broadband could bridge the last-mile connectivity gap in remote regions where fibre is uneconomical. The country has about 68 million fixed broadband connections, but millions more remain unconnected. Starlink's entry could accelerate this, but only if the regulatory process concludes and the economics work. Until then, the gateways stand ready, the licences are in hand, and the waiting game continues. The outcome will shape not just the competitive landscape between Starlink and Jio, but the future of internet access in India's hardest-to-reach corners.
