Elon Musk's satellite internet startup, Starlink, is getting closer to receiving clearance to operate in India after agreeing to observe some critical regulatory criteria. These guidelines require businesses to maintain all of their data in India and to provide government access if necessary for security reasons.

Starlink requires a specific licensing, known as the GMPCS licence, to deliver satellite-based internet services in India. Before issuing this licence, the Department of Telecommunications (DoT) requires enterprises to adhere to severe data localisation standards. According to the source, Starlink has agreed "in principle" to obey these guidelines, but has not yet delivered an official agreement.

Elon Musk's recent endorsement for US President-elect Donald Trump may benefit Starlink's global prospects. Trump has hinted at giving Musk a role in his cabinet, which might indirectly assist Starlink as it seeks to expand globally, including India.

Starlink submitted for the GMPCS license in October 2022, and it has also sought further permits from India's space authority, IN-SPACe. IN-SPACe recently requested additional information from Starlink and Amazon Kuiper, a competitor satellite supplier, before finalizing their certifications. At the same time, another regulator, TRAI, is developing rules for selling and distributing satellite spectrum—the radio frequencies required for companies to provide internet access from space. The TRAI's final rules are expected in December.

Indian telecom behemoths Reliance Jio, Bharti Airtel, and Vodafone Idea are concerned about Starlink and other overseas satellite operators. They argue that these companies should have to buy spectrum through auctions to maintain fair competition, particularly in metropolitan areas where satellite internet would compete directly with mobile internet. 

Starlink believes that satellite internet should be treated differently than traditional telecom networks, and that satellite spectrum should be allocated without an auction.