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regular-article-logo Friday, 22 November 2024

Elon Musk's Starlink yet to comply with licence rules to set up satcom services in India

The satellite service provider is actively working to meet the regulatory standards, Scindia told reporters, adding: 'We are more than happy to give them a licence if they comply with all the conditions. It’s a matter of addressing all security concerns.'

Our Special Correspondent New Delhi Published 13.11.24, 09:59 AM
Telecom minister Jyotiraditya Scindia.

Telecom minister Jyotiraditya Scindia. File picture

Telecom minister Jyotiraditya Scindia said on Tuesday that Elon Musk’s Starlink must first comply with security requirements before receiving a licence to operate satellite communication services in India.

The satellite service provider is actively working to meet the regulatory standards, Scindia told reporters, adding: “We are more than happy to give them a licence if they comply with all the conditions. It’s a matter of addressing all security concerns.” Starlink will be licensed as soon as these are resolved, he added.

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The government has already issued licences to Bharti Group-backed OneWeb and Jio-SES, a joint venture with Jio Satellite Communications.

Both companies are still waiting for the allocation of spectrum as Trai works on its recommendations relating to spectrum pricing and other issues which are expected by the middle of December.

Once the government evaluates these recommendations, spectrum could be allocated, clearing the path for satellite-based broadband to be launched in India.

Responding to questions about a 24,700-crore bank guarantee waiver requested by Vodafone Idea (VIL), Scindia said any decision would be sector-wide, not specific to any company.

“Bank guarantee waivers have already been given after the 2022 auction. Any step that the government takes will be a sectoral step,” he said.

VIL has been asked by the department of telecommunications (DoT) to submit bank guarantees by September next year, covering spectrum payments of 24,747 crore due then.

Bank guarantees are typically required at least a year before the payment deadline. VIL has sought an exemption, citing the 2022 and 2024 spectrum auction rules that removed bank guarantee requirements for annual instalments.

The DoT has also consulted the finance ministry on granting a bank guarantee exemption.

VIL has already cleared about 16,000 crore in interest obligations on deferred payments and offered the government a 23 per cent equity stake in the company.

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