Raymond J. de Souza: Elon Musk’s unglorious moment

Bharatiya Janata Party MP Nishikant Dubey has criticized Elon Musk's comments about the satellite internet provider Starlink, arguing that India does not alter its security policy in response to pressure or social media. Dubey, who chairs a parliamentary committee, stated that India is a "healthy democratic, sovereign nation" and that his committee has identified risks to the country's security agencies posed by Starlink.

The exchange has reignited a debate over the regulatory issues surrounding Starlink's entry into India. Starlink, the satellite broadband division of SpaceX, operates a network of low Earth orbit satellites that provide internet connectivity to remote areas. India's approval process has been gradual, with the company receiving a satellite communication license and approval from the space regulator IN-SPACe in 2025.

However, the final step - commercial service - depends on the assignment of spectrum and the conditions attached to it, which remain contentious. Reliance Jio has argued that spectrum should be auctioned, similar to mobile spectrum, while Starlink and other global players have advocated for an administrative allocation approach.

Security conditions are a key point of contention, as satellite service licenses typically require gateways to be located in India, traffic monitoring, and interception facilities for government agencies. Dubey's comments suggest that the committee remains concerned about whether these safeguards are adequate for a foreign-owned constellation.

Musk's remarks began with an attack on Mukesh Ambani's supporters, accusing them of hypocrisy for claiming that Starlink couldn't compete with Ambani's low prices while also arguing that Starlink would be too strong a competitor. He emphasized that competition would benefit Indian consumers by providing more choices and that Ambani's profits would not be affected.

Musk also addressed pricing, stating that if Starlink were too expensive, SpaceX would need to make pricing more affordable, with the market determining whether customers would adopt the service. Musk then shifted to a more heartfelt tone, arguing that many parts of India lacked internet access, denying children education and small businesses the ability to reach global markets.

He urged the Indian government to allow Starlink to compete. Dubey rejected this argument, pointing to the previous government's concerns about the same risks. He also questioned Musk's dedication to internet access, suggesting that he should first work on providing affordable internet in the United States before criticizing India.

The dispute also extends beyond politics, with investor and fintech commentator Sheel Mohnot questioning Starlink's potential to attract enough paying customers in India. He cited the current average monthly price of $4 for 60GB of high-speed internet in India as proof that the country already has affordable internet options. Mohnot argued that Starlink's $27-a-month price would be significantly higher, questioning whether many people would be willing to pay that amount.