Will Musk Quit His Indian Dream? India Caps Starlink Approval At 5 Years- What’s Next For Elon? News24 –

Billionaire Elon Musk’s Starlink faces an uncertain future in India as TRAI Considers License Restrictions. The Telecom Regulatory Authority of India (TRAI) has recommended granting a five-year satellite broadband spectrum license to Elon Musk’s Starlink, instead of the 20-year license the company had requested. TRAI considers this five-year term sufficient as a trial period. The regulatory body is currently in discussions to finalize the pricing, licensing framework, and other aspects related to satellite spectrum allocation.

According to a Reuters report, TRAI plans to agree to demands for a lower licence time-frame “of around 5 years and then see how the sector grows,” said quoting government source. “This will help understand how the market stabilises, so there’s no point going beyond five years,” said the official. The article suggests that TRAI’s shorter timeframe is intended to allow the Indian government to evaluate how the satellite broadband market develops before committing to longer-term licenses. TRAI is expected to take about a month to finalize its recommendations on the license duration and per megahertz spectrum pricing. Once finalized, these recommendations will be submitted to India’s telecom ministry for further review and action.

Why Airtel And Reliance Push For Only Five Years

Musk has partnered with Ambani’s Reliance and Bharti Airtel to ensure seamless distribution and smooth service delivery. However, both companies have recommended a five-year license period, contradicting Musk’s request for a 20-year deal in India. Experts believe that Indian telecom giants like Reliance and Airtel are pushing for shorter terms (3-5 years) to safeguard their investments in traditional telecom infrastructure and maintain a competitive edge.

Musk’s Entry To India Through Ambani And Airtel

Musk and Indian billionaire Mukesh Ambani has undergone a deal that will allow Starlink devices to be sold in Ambani’s Reliance (RELI.NS), which is expected to open new tab stores for large distribution access. Starlink has pushed New Delhi to allot spectrum for 20 years to focus on “affordable pricing and longer-term business plans”, while Reliance sought it for three years, after which it wants India to reassess the market, according to their public submissions.

Deal With Airtel

Another Indian telecom, Bharti Airtel, has also pushed for a 3-5 year period for the licence. Airtel and Musk have also signed a distribution deal for Starlink, likewise Ambani’s Reliance.

Musk And Starlink In India

Starlink aims to provide high-speed internet even in India’s remote areas. This will practicaly be possible using a constellation of satellites. It was for this Musk has recently partnered with Indian telecom giants Reliance (owned by Mukesh Ambani) and Bharti Airtel for distribution. However, these partnerships are contingent on regulatory approvals, including spectrum allocation. Musk has asked India for a 20-year license, which he says that is to ensure affordable pricing throughout the country and as a strategy for long-term business planning.

What Will Be Elon Musk’s Next Move?

Elon Musk’s next move remains unpredictable. Walking away from the Indian market doesn’t seem like a viable option, as the billionaire remains keen on expanding Starlink’s presence in India. Experts suggest that Starlink is likely to intensify lobbying efforts with the Indian government to secure a longer license period. There is also speculation that Musk could leverage diplomatic channels, potentially involving former U.S. President Donald Trump, to negotiate favorable terms.

Alternatively, Musk might pivot Starlink’s strategy to align with the five-year cap. This could involve shorter-term customer contracts or investments in technologies that minimize dependence on long-term regulatory approvals. While exiting India entirely remains an option, the country’s vast market and growth potential make such a move highly unlikely.