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The Indian government has made it clear that Elon Musk's Starlink satellite internet service will only be granted a license to operate in the country if it fully adheres to India's security regulations. This stance was articulated by Union Telecom Minister Jyotiraditya Scindia, who emphasized that Starlink must address all security concerns before receiving permission to operate. While Starlink is actively working towards meeting these requirements, the license remains contingent upon their successful completion of the process.
In a separate development, Vodafone Idea (VIL) has requested the government to waive the Rs 24,700 crore bank guarantee it is required to submit for its spectrum payment due next year. The company argues that the 2022 and 2024 spectrum auction rules have removed the requirement for bank guarantees for annual installments. The government's response will be sector-wide, not company-specific, and will likely impact the entire telecom industry. It is worth noting that the government holds a 23% stake in VIL.
Despite these specific cases, the telecom sector in India is experiencing positive growth. The minister highlighted the strides made in developing an indigenous 4G stack, making India one of only six countries worldwide with this capability. Furthermore, BSNL, the public sector telecom company, is set to roll out its 4G network by May-June 2023, with a transition to indigenous 5G technology planned for mid-2023. This commitment to technology development positions India as a leader in the global telecom landscape.
Addressing the issue of revenue sharing between telecom operators and over-the-top (OTT) communication apps, the minister indicated that an advisory committee has been formed to gather input. The Telecom Regulatory Authority of India (TRAI) is expected to assess the situation and formulate a policy decision on this matter.
Source: 'Can Give Licence, But...': Union Minister On Elon Musk's Starlink In India