Starlink India launch hits security roadblock before SpaceX IPO

NEW DELHI - India has effectively frozen approvals for Elon Musk’s space-based internet service Starlink to begin commercial operations, due to concerns over the use of its satellite terminals in the Iran war, according to people familiar with the matter.

Security agencies under India’s Ministry of Home Affairs have withheld the final clearances Starlink needs to launch, the people said, requesting not to be identified as the information was private.

Reports that Starlink terminals were in use during the Middle East conflict, despite the service not being licensed in Iran, have heightened fears in New Delhi about its ability to control a US-based operator during geopolitical tensions, they said.

The setback lands just days before SpaceX is expected to price what could be the largest initial public offering in history: a June 12 Nasdaq listing targeting a US$1.75 trillion (S$2.25 trillion) valuation.

As the company’s primary revenue engine, Starlink is central to that valuation, and the delay highlights a risk investors may have overlooked: Its global expansion is far from uniform.

The service has effectively been shut out of China. And India – the world’s most populous nation and one of the largest underserved broadband markets – is, for now, also out of reach.

The impasse has also stalled a satellite-spectrum pricing proposal required for any commercial launch, 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, the people added.

Starlink secured a Global Mobile Personal Communication by Satellite licence in India nearly a year ago, allowing it to enter agreements and prepare for operations, which had been expected months ago.

But the licence was only one step in a broader regulatory process that has since ground to a halt.

Security concerns

In 2025, Starlink conducted security demonstrations reviewed by telecom authorities and a dedicated security panel.

Since then, Indian officials have raised additional questions and sought further compliance measures, the people said.

Its security clearance remains pending until Starlink explains how, given its global footprint and US ownership, it can guarantee compliance with Indian security requirements when geopolitical tensions generate conflicting demands from foreign governments, they said.

India’s Ministry of Home Affairs and Ministry of Communications did not immediately respond to separate e-mails seeking comment. An e-mail sent to SpaceX went unanswered outside regular business hours.

The heightened scrutiny extends beyond Starlink. Indian officials have adopted a more cautious stance toward the satellite-communications sector following the Iran conflict, the people said.

Domestic operators Reliance Industries’s Jio Infocomm and Bharti Airtel, both of which have partnerships with European satcom providers, are also facing closer examination of their arrangements, though they are viewed as relatively less problematic, the people added.

India’s Jio and Bharti Airtel did not immediately reply to requests for comment.

The concern reflects a broader unease about relying on overseas-controlled communications infrastructure amid rising geopolitical uncertainty.

Starlink has continued engaging with Indian authorities, submitting affidavits and emphasising that it meets local data-storage requirements. 

It has also set up on-the-ground infrastructure, including about 10 gateways in India, with a hub in Mumbai.

Senior company executives have periodically met ministers and government officials in an effort to advance the process, the people said.

India, however, remains reluctant to provide a full green light to Starlink until its security concerns are resolved, the people added. BLOOMBERG