Indian security agencies have withheld the final clearances that would enable Starlink to begin commercial services in the country, according to people familiar with the matter. The pause stems from security concerns tied to reports that Starlink satellite terminals were used during the war in Iran despite the service not being licensed for operation there.
Those security worries have prompted officials within India’s Ministry of Home Affairs to stop the clearances necessary for a commercial launch. Authorities in New Delhi are said to be concerned about the government’s ability to exert control over a U.S.-based satellite operator during periods of geopolitical tension, the people said.
The timing of the setback is notable. It comes just days before SpaceX was expected to set pricing on a June 12 NASDAQ listing that had been targeting a valuation of $1.75 trillion. Starlink is a central component of SpaceX’s valuation case given that the satellite internet service is positioned as the company’s main revenue engine.
The hold on approvals underscores a broader risk to Starlink’s international expansion. The service is already effectively barred from China, and the current impasse prevents it from entering India - the world’s most populous country and one of the largest underserved broadband markets.
The approval freeze has also stalled a separate but related regulatory step: a satellite-spectrum pricing proposal that would be required before any commercial launch, whether by Starlink or by Indian competitors. India’s Department of Telecommunications has reportedly finalized the pricing framework, but it has not yet submitted the proposal to the federal cabinet for formal approval.
Starlink previously secured a Global Mobile Personal Communication by Satellite license in India nearly a year ago, a permit that allowed the business to sign agreements and prepare operationally. That license, however, was only one element of a more comprehensive regulatory process that has now stalled.
Context note - The information above reflects details provided by people familiar with the matter. No additional regulatory decisions or government statements were reported in the material provided.