India has effectively frozen approvals for Elon Musk’s space-based internet service Starlink to begin commercial operations, due to concerns over the use of its satellite terminals in the Iran war, according to people familiar with the matter.
Security agencies under India’s Ministry of Home Affairs have withheld the final clearances Starlink needs to launch, the people said, requesting not to be identified discussing information that is private. Reports that Starlink terminals were in use during the Middle East conflict despite the service not being licensed in Iran have heightened fears in New Delhi about its ability to control a US-based operator during geopolitical tensions, they said.
The setback lands just days before SpaceX is expected to price what could be the largest initial public offering in history — a June 12 Nasdaq listing targeting a $1.75 trillion valuation. As the company’s primary revenue engine, Starlink is central to that valuation, and the delay highlights a risk investors may have overlooked: its global expansion is far from uniform.
The service is effectively shut out of China. And India — the world’s most-populous nation and one of the largest underserved broadband markets — is, for now, also out of reach.
Starlink responded by stressing its ongoing engagement with local authorities, and its commitment to bring its services to the country very soon.
“Starlink remains in active and productive discussions with the Government of India,” Lauren Dreyer, vice president, Starlink Business Operations, said on social media platform X. “To align with India’s sovereign technology, regulatory and security requirements, Starlink has setup a bespoke deployment model for India that further demonstrates our commitment to working within India’s strategic framework.”
The impasse has also stalled a satellite-spectrum pricing proposal required for any commercial launch, whether by Starlink or its Indian competitors. India’s Department of Telecommunications has finalized the framework, but it has not been sent to the federal cabinet for approval, the people said.
Starlink secured a Global Mobile Personal Communication by Satellite license in India nearly a year ago, allowing it to enter agreements and prepare for operations — which had been expected months ago. But the license was only one step in a broader regulatory process that has since ground to a halt.
Security Concerns
Last year, Starlink conducted security demonstrations reviewed by telecom authorities and a dedicated security panel. Since then, Indian officials have raised additional questions and sought further compliance measures, the people said. Its security clearance remains pending until Starlink explains how, given its global footprint and US ownership, it can guarantee compliance with Indian security requirements when geopolitical tensions generate conflicting demands from foreign governments, they said.
India’s Ministry of Home Affairs and Ministry of Communications did not immediately respond to separate emails seeking comment.
The heightened scrutiny extends beyond Starlink. Indian officials have adopted a more cautious stance toward the satellite-communications sector following the Iran conflict, the people said.
Domestic operators Reliance Industries Ltd.’s Jio Infocomm Ltd. and Bharti Airtel Ltd., both of which have partnerships with European satcom providers, are also facing closer examination of their arrangements, though they are viewed as relatively less problematic, the people said.
India’s Jio and Bharti Airtel did not immediately reply to requests for comment.
The concern reflects a broader unease about relying on overseas-controlled communications infrastructure amid rising geopolitical uncertainty.
Starlink has continued engaging with Indian authorities, submitting affidavits and emphasizing that it meets local data-storage requirements.
It has also set up on-the-ground infrastructure — including about 10 gateways in India, with a hub in Mumbai. Senior company executives have periodically met ministers and government officials in an effort to advance the process, the people said. India, however, remains reluctant to provide a full green light to Starlink until its security concerns are resolved, the people said.
