Elon Musk’s satellite internet venture faces local constraints as spectrum pricing and telecom regulation limit expansion.

New Delhi, July 29, 2025 The Indian government has limited Starlink’s users to 20 lakh. It cited spectrum constraints and telecom policy issues as the reason. Elon Musk’s Starlink, which provides satellite internet globally, will now need to scale back its expansion plans in India.

On Monday, Telecom Minister Devusinh Chauhan said Starlink’s user cap is due to both technical and commercial factors.. He explained that companies are likely to opt for a monthly service or broadband plan costing around ₹2,000. In contrast, Jio, Airtel, and BSNL offer lower-cost plans with similar or better speeds.

At a BSNL review meeting, a government official said Starlink can serve only 20 lakh users in India, with speeds up to 200 Mbps. That won’t affect telecom services.” The official added that the government does not see Starlink’s entry as a major disruption, considering the scale of India’s existing telecom infrastructure.

Chauhan emphasized that the cap is also due to Starlink’s use of satellite-based connectivity, which remains expensive when compared to terrestrial broadband. “The company’s user ceiling is aligned with the limited footprint satellite internet can serve without causing interference,” he said.

India’s Department of Telecommunications (DoT) has not yet issued a final license to Starlink. However, sources confirmed that the firm is likely to get approval for low-earth orbit (LEO) services under a restricted user base model.

Starlink currently operates a constellation of over 4,400 satellites, providing internet access in remote and underserved regions worldwide. In India, the service has seen interest from rural and hilly areas, where conventional telecom infrastructure struggles to reach.

Government officials have also raised concerns about spectrum pricing and regulatory approval. They noted that Starlink will have to pay a significant sum for spectrum allocation and adhere to India’s telecom licensing regime. DoT is expected to finalize the pricing and licensing framework in consultation with the Telecom Regulatory Authority of India (TRAI).

If approved, Starlink’s India rollout will cover areas where terrestrial telecom services are weak or absent. However, the limit of 20 lakh users ensures that traditional service providers are not adversely impacted.

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