India’s Big Ask From Starlink: Entry Costs, Legal Guardrails, Security Clauses — Profit Exclusive

The Indian government is opening the gates to the satellite communication (satcom) sector — but with some strict conditions.

The Letter of Intent issued to Starlink Satellite Communications Pvt. Ltd. outlines a comprehensive set of obligations designed to ensure “control, accountability, and a loophole-free entry” into India's telecom ecosystem, according to documents reviewed by NDTV Profit and people familiar with the matter.

Sources and a copy of the LoI reviewed by NDTV Profit said that Starlink's Indian arm is required to pay a non-refundable entry fee of Rs 1.60 crore. This covers the company's authorisations under the Unified Licence for GMPCS, VSAT, and ISP-A services, allowing it to provide their services pan India.

In addition to the entry fee, Starlink is required to submit performance and financial bank guarantees totalling over Rs 1.20 crore. These guarantees are meant to ensure Starlink meets its rollout and service obligations. If the company fails to comply, the government has the right to invoke the guarantees and recover the amount directly from the bank.

Beyond financial conditions, the LoI includes several key legal clauses focused on accountability and national security. Starlink is required to clear all dues, not just for itself, but for any affiliate, sister concern, or associated company that may have been connected to operators whose licences were cancelled under the Supreme Court's 2012 2G spectrum verdict.

“The document acts as a full-spectrum legal shield. Even if there's no direct link today, the government has left room to act if something surfaces later,” a senior official told NDTV Profit.

The LoI also states that the licence can be revoked at any point if earlier disclosures are found to be false or misleading — even after all compliances are met.

Although Starlink is yet to receive the final unified licence, sources suggest the Department of Telecommunications is likely to issue it by mid-June, provided all conditions are fulfilled. Starlink must accept the LoI's terms within 21 working days or risk the offer lapsing.

As final-stage discussions continue, Starlink's Global Licensing Head, Parnil Urdhwareshe, is in India meeting top officials at the DoT in Delhi.

Post-approval, Starlink plans to roll out its first phase of infrastructure within six to seven months, which includes setting up over 27 ground gateways across three strategic locations in India.