SpaceX’s plans to add millions of new subscribers to its satellite internet network could quash Indian government fears that the company will not comply with the law.
SpaceX has won permission to begin operations in India in 2025 after years of lobbying officials in New Delhi. Progress was made to launch the service there, but Bloomberg now reports that Indian officials have halted efforts after SpaceX allowed Starlink access within Iran despite not having legal permission to operate there.
“Starlink continues active and productive discussions with the Government of India, contrary to misleading narratives based on unsubstantiated claims from anonymous sources,” Lauren Dreyer, SpaceX’s vice president of Starlink operations, said in a social media post. Bloomberg did not report that discussions had stalled.
Delays in service delivery in India could cause problems ahead of SpaceX’s IPO. Financial disclosures show Starlink’s customer growth is slowing.
The value of SpaceX’s Starlink network will depend on the number of countries it can serve. Building a global infrastructure has a set cost, and revenue depends on the number of subscribers using the service. Market access is country-specific, with many governments seeking to protect domestic telecommunications companies through joint ventures or directly control who can access their services and how.
India has set requirements for local data storage and network security that SpaceX has worked to meet. However, anonymous sources told Bloomberg that the government is concerned that it cannot actually exercise control over Starlink due to unauthorized use in Iran.
SpaceX’s network control has been problematic before. Ukrainian forces using Starlink to fight a Russian invasion have complained after it was taken out of service in 2022 after Musk raised concerns about their progress. Starlink’s talks with the Taiwanese government have made no progress due to Musk’s past claims that Taiwan is part of China and the company’s apparent refusal to cooperate with local Taiwanese partners.
