India must not hand Starlink the switch

In late 2021, Starlink, then headquartered in India, announced an ambitious target of having 2 lakh terminals operational in the country by the end of 2022, with most of these terminals located in rural areas. The company had pre-sold services to around 5,000 Indians, but had no official license. The Department of Telecommunications (DoT) intervened, ordering Starlink to halt operations and refund the pre-paid fees, after which the company's then-head, Sanjay Bhargava, resigned.

This incident serves as a reminder of the challenges faced by Starlink in India. At the recent India Mobile Congress, a SpaceX VP, Lauren Dreyer, stated that Starlink has established 20 gateway sites in the country and is prepared to serve India once the government is ready. However, Elon Musk, just a few hours later, accused certain "oligarchs" of blocking the service, labeling it a "crime against the people of India."

Despite these claims, the situation remains the same since 2021: Starlink moves first and treats regulatory hurdles as obstacles. There are three additional reasons for the Indian government to be cautious in granting Starlink the necessary license:

1. Pricing: Starlink's proposed kit costs between ₹33,000 and ₹35,000, with monthly fees of at least ₹3,000. This pricing is significantly higher than the current alternatives in India. A fibre connection costs between ₹500 and ₹1,500 per month, while mobile data is priced at about ₹10 per gigabyte. The typical household keeps its internet bill under ₹1,000.

2. Servicing challenges: Starlink equipment has been recovered by security forces in Manipur from insurgent groups, and one terminal was seized in the Andamans. There have also been reports of militants near the Myanmar border using smuggled Starlink units to bypass internet shutdowns during unrest. In conflict zones, cutting off Starlink service takes place on the company's own schedule, which could be a significant challenge in remote areas with no road access.

3. Security concerns: Starlink has stated that Indian user data will remain within Indian borders and that they have implemented controls to comply with Indian security requirements. However, there is no guarantee that the company will adhere to these protocols in a timely manner. In Bolivia, which refused Starlink a license, kits were reportedly smuggled in from neighboring countries and registered to addresses in Brazil or Chile.

Starlink claims its systems detect discrepancies and terminate service after approximately 60 days, but this time frame could be too long in a conflict zone.

Furthermore, Starlink insists that user data will remain in India and has implemented measures to comply with Indian security requirements. However, the issue lies in the fact that the company controls the satellites, not the Indian government. In Ukraine, coverage in the war zone depended on the discretion of a single individual, raising concerns about the reliability and control of Starlink's satellite coverage.

The objection raised by Bolivia regarding foreign satellite operators is that they weaken a government's ability to enforce its own laws on its networks. While this concern may be valid, it is essential to remember that the remedy for poor shutdown policies lies in developing better laws within the country, rather than relying on a private firm headquartered abroad.

In conclusion, refusing Starlink's request for a license is not an endorsement of the current state of internet connectivity in India. With over 11,000 villages lacking 4G coverage as of May 2021, rural India has only 48 internet subscriptions per 100 people, compared to 127 in urban areas. Despite BharatNet laying over 8.5 lakh kilometers of fiber and declaring about 2.2 lakh gram panchayats as service-ready, the actual number of working points of presence is still limited to just 80,000.

Addressing this digital divide requires a comprehensive solution, which includes satellite capacity as part of the fix in hilly and island regions. However, the off-switch should remain within India's jurisdiction to ensure better regulation and control.