Prof. DM Deshpande
Elon Musk has made sweeping allegations against the Indian government and telecom regulator. His company, Starlink, is still awaiting clearance for launch of satellite internet. Without naming any person or organisation he has alleged some ‘oligarchs’ have blocked his entry. And that the regulatory process was unfair and discriminatory. This was enough to guess who he was referring to.
Subsequently, Musk reiterated that it is Mukesh Ambani of Reliance, not the PM, who runs the country. The Ministry of Telecommunications has responded with alacrity pointing out that Musk’s allegations are mischievous and without basis.
Starlink has obtained early approvals and is now awaiting spectrum allocation and final clearance. Musk has pointed out that he has operations in over 160 countries and has followed all norms and laws of the land. He has been waiting since the last four years.
However, the Ministry of Telecommunication has pointed out that three firms including Starlink are in the same regulatory stage with security assessments being done in respect of each of these entities. Bharti Airtel, in fact, is first in queue; its application is pending for the past five years.
Musk has claimed that his company would provide last mile connectivity and go where no firm would go in India. And that it would provide affordable service. However, his affordability may not stand the test of Indian standards. The kit, a one-time expenditure, is likely to carry a price tag of Rs 34,000 and monthly plans, as per reports thus far, cost in the range of Rs 3,000 to Rs 8,600.
Compare this with rates in India-a gigabyte of mobile data for Rs 10. Most families restrict their monthly internet bill to Rs 1,000 or less. It is obvious that Starlink is not built for most Indians.
The experience of Bangladesh is illustrative. Starlink launched internet services in May 2025 at a price point between Rs 4,200 to Rs 6,000 taka. After a year, there are 5,400 customers, mostly businessmen in a country of 13 crore internet users.
Musk assures he will lower prices in India, if need be. We are talking about the world’s richest businessman who has announced bankrolling prices just before a rival is about to enter the market. This is no social service, just a business tactic. Why should the government pay for dishes to take the services to remote villages to a foreign company using public funds when there are domestic players who can do the job?
Moreover, this was supposed to be done by BharatNet. Defence and security are primary concerns. The experience of Ukraine is an example of heightened risks of dependence on a foreign service provider, especially in times of war. Musk’s SpaceX is reported to have restricted the internet for any object moving at a speed of 160Km/hour or more without Kyiv‘s knowledge. This affected the war plans of Ukraine and its long range strikes had to be called off. Repeated pleas to restore service yielded no result. Musk says that it is the US military that decides such issues. On its part the US military says it has nothing to do with it. Whatever the truth, the fact remains that Ukraine suffered and that is what matters for India.
The need for satellite internet services are felt more in far flung, mountain regions where army posts are patrolling, oil rigs, ships and the like. But, they are also places where the geopolitical risks are the highest. These concerns are flagged by Takshashila Institution in a report entitled ‘Starlink and Security
Risks for India’.
The loss of government control could spell disaster during the national security crisis. Services may be switched off when most required or could remain active when the government wants them to be suspended.
Musk may not be taking orders from Washington. But his interests are more aligned with that of the US, not India. He has huge interest and stake in the political establishment of the US. He played a major role in the Presidential elections in 2024. Later he called the shots at the Department of Government Efficiency.
Though he parted ways with President Trump in 2025 after an ugly public spat, both have maintained working relationships. As per reports, he has already committed $276 million to the Republican cause in the November midterm polls since July. SpaceX has big contracts with the Pentagon and the American Intelligence Services. It is pertinent to note that when India requested for GPS data from the US during Kargil war, the same was denied. As a blessing in disguise, it led to the establishment of NavIC.
Musk’s story of favouritism holds no water. Indian bureaucracy is slow at times which is quite well known. However, there are adequate checks and balances; it cannot be rigged or manipulated especially when there is a question of national security.
In the telecom space, India needs competition. From over 10 players, we have moved down effectively to a duopoly. But we need companies on our terms. The major requirements are provisions governing the routing of Indian traffic, mandatory location of domestic network infrastructure, facilitating lawful interception by authorities and monitoring of user terminals. Starlink’s response to India’s security concerns has not been encouraging. Instead, accusations of protecting the interests of prominent business groups have been hurled at India; and that regulatory hurdles are created in order to further commercial interests in the name of national security concerns.
It maintains that Starlink is complying with data protocols and other regulatory requirements. The bottomline- the resolution will not come soon. Musk must be prepared to wait and comply with all regulatory requirements.
The author has four decades of experience in higher education teaching and research. He is the former first vice-chancellor of ISBM University, Chhattisgarh
