Elon Musk’s ambitious satellite internet project, Starlink, has taken a significant step toward launching its services in India. Backed by SpaceX, Starlink has reportedly received preliminary approval from India’s Department of Telecommunications (DoT), signaling a potential game-changer for internet connectivity in the country, especially in rural and underserved regions.

Key Milestone: Letter of Intent Issued

According to a report by Moneycontrol, the DoT has issued a Letter of Intent (LoI) to Starlink, covering licenses under GMPCS (Global Mobile Personal Communication by Satellite), VSAT (Very Small Aperture Terminal), and ISP (Internet Service Provider) categories. While this marks a crucial development, the company still awaits its final license, which will be granted once it meets all regulatory and technical conditions outlined by the Indian authorities.

Trade Influence in Fast-Tracked Approval?

Interestingly, a report by The Washington Post suggests that Starlink’s progress may also tie into broader U.S.-India trade negotiations. While not a formal part of ongoing trade discussions, government insiders believe that facilitating Starlink’s entry could act as a strategic “lubricant” to deepen bilateral relations and foster high-tech collaboration between the two nations.

Why Starlink Matters: A Billion-Dollar Opportunity

Starlink’s foray into India could open a multi-billion-dollar revenue stream for SpaceX. Even a 1% share of India’s broadband market—which has over 850 million users—could yield nearly $1 billion annually. This underscores the economic potential of extending satellite-based broadband across one of the world’s largest and most underserved internet markets.

Starlink vs. OneWeb: India’s Satellite Internet Landscape

India is already home to satellite broadband services offered by OneWeb, a company with major investment from Bharti Airtel. OneWeb caters to remote businesses and community networks. With Starlink now entering the space, the competitive dynamics in India’s satellite internet segment are poised for disruption, offering more choices and possibly lower prices for end users.

Partnerships with Jio and Airtel Already in Place

Earlier this year, Reliance Jio and Airtel both signed memorandums of understanding (MoUs) with Starlink. These partnerships are expected to accelerate the service rollout once the final licenses are secured. As per the deal, Jio may distribute Starlink through its retail outlets and online platforms, while Airtel plans to integrate Starlink’s offerings into its enterprise and rural connectivity solutions.

What is Starlink and How Does It Work?

Starlink aims to deliver high-speed, low-latency internet using a constellation of thousands of low Earth orbit (LEO) satellites. This approach eliminates the limitations of traditional fiber or cable-based networks, enabling reliable internet access even in geographically isolated or mountainous areas. Starlink’s infrastructure relays data directly between satellites and ground stations, making it ideal for underserved regions.

Impact on Rural India: Digital Inclusion

Both Airtel and Jio have expressed interest in leveraging Starlink’s capabilities to bridge the digital divide in India. Target areas include rural schools, health centers, and remote communities that currently lack stable internet infrastructure. Airtel is also reportedly exploring ways to allow Starlink to utilize its extensive telecom infrastructure in India to enhance service delivery.

Performance Expectations in India

When Starlink officially launches in India, it is expected to offer:

Download speeds between 25 Mbps and 220 Mbps

Upload speeds ranging from 5 Mbps to 20 Mbps

Latency between 25 ms to 50 ms

These speeds should support most modern internet use cases such as streaming, video conferencing, online education, and even gaming.

Global Expansion Continues

India isn’t the only market on Starlink’s radar. Just recently, SpaceX launched Starlink services in Brazil, highlighting its ongoing commitment to expanding its global footprint. With the addition of India, Starlink’s global reach will further extend into one of the most populous and data-hungry nations in the world.

Conclusion

The issuance of the Letter of Intent to Starlink by India’s DoT is a pivotal moment in the country’s internet evolution. Once the final license is granted, Starlink could play a transformative role in bridging the digital divide, particularly in underserved areas. With strategic partnerships already in place and an ambitious plan to democratize internet access, Elon Musk’s satellite venture may soon revolutionize the way India connects to the world.