India has effectively blocked Elon Musk's Starlink from launching commercial operations in the country, in a move that few saw coming given how close the approval process appeared to be. According to Bloomberg,
citing people familiar with the matter, security agencies under India's Ministry of Home Affairs have withheld the final clearances Starlink needs to launch, with concerns over the use of its satellite terminals in the Iran war cited as the trigger.
The timing is significant. The setback lands just days before SpaceX is expected to price what could be the largest initial public offering in history. SpaceX eyes a June 12 Nasdaq listing targeting a $1.75 trillion valuation.
Starlink India rollout stalled: The Iran problem
The immediate cause is a specific and uncomfortable allegation. Reports indicate that Starlink terminals were in use during the Middle East conflict despite the service not being licensed in Iran, heightening fears in New Delhi about its ability to control a US-based operator during periods of geopolitical tension.
For India, the concern is not just about Iran — it is about what could happen closer to home. Indian officials have raised additional questions about how, given Starlink's global satellite footprint and US ownership, the company would guarantee compliance with Indian security requirements if foreign governments make conflicting demands. Unlike a conventional telecom network anchored by cell towers on Indian soil, Starlink operates through satellites in low Earth orbit with no mandatory physical ground infrastructure.
Starlink India rollout stalled: How close India was to saying yes
The freeze is particularly stinging because approval had appeared imminent. Starlink had already cleared two major regulatory hurdles, securing both a Unified License and a Global Mobile Personal Communication by Satellite authorisation from the Department of Telecommunications in 2025, and was by most accounts on the doorstep of launching in one of the world's largest untapped internet markets.
Starlink has submitted affidavits stating that it meets local data-storage requirements and set up on-ground infrastructure, including around 10 gateways in India with a hub in Mumbai. Ministers had publicly discussed expanding rural connectivity with Starlink executives as recently as last December.
Starlink India rollout stalled: The wider ripple effect
The freeze is not limited to Starlink alone. The impasse has also stalled a satellite-spectrum pricing proposal required for any commercial satellite internet launch in India, whether by Starlink or its Indian competitors. India's Department of Telecommunications has finalised the framework, but it has not been sent to the federal cabinet for approval.
Indian telecom giants Bharti Airtel and Reliance Jio, both of which had signed agreements with SpaceX in 2025 to help bring Starlink to the Indian market, are also caught in the uncertainty. India appears to be stepping back and rethinking its approach to foreign-controlled satellite communications infrastructure more broadly.
