Bridging the Digital Divide or Exposing Strategic Vulnerabilities?

India’s satellite internet landscape saw an unexpected surprising turn when Airtel announced its partnership with SpaceX marking Starlink’s first formal collaboration in the country. In a swift response, Jio followed suit the very next day by announcing its own deal with SpaceX to bring Starlink’s broadband services to India. While Twitter buzzed with debates over the possibilities and implications, a closer examination uncovers a range of challenges. These extend beyond pricing, bandwidth, and connectivity to encompass issues of national sovereignty, legal protections, and digital governance in an increasingly decentralized internet ecosystem.

Redefining Internet Access

The modern internet relies predominantly on ground-based infrastructure such as fiber optic cables, cellular towers, and undersea links. While this system is efficient, it has a significant limitation: it struggles to provide connectivity in remote or challenging terrains like the Himalayas, the North-East, tribal regions, or disaster-affected areas. Low Earth Orbit (LEO) satellite internet offers a groundbreaking solution by eliminating the dependence on extensive ground infrastructure. Instead, it provides direct satellite connectivity, enabling coverage in areas that traditional networks cannot reach. This shift is not merely technological; it represents a fundamental redesign of internet accessibility- from a location-dependent network to one based in the sky.


The Jio, Airtel, and Starlink Deal

Jio, through its JioSpaceFiber initiative, and Airtel, via its partnership with OneWeb, are launching
satellite-based internet services targeting rural, border, and low-connectivity areas.
Before all this, Jio was actively lobbying against Starlink’s entry into the Indian market. The reason was simpleStarlink posed a competitive threat to Jio, which had invested heavily in infrastructure and complied with strict regulatory norms. Jio, along with other operators, urged the government to ensure a level playing field, emphasizing the need for regulatory oversight over foreign satellite players.
The issue wasn’t just competition, it was about how spectrum would be allocated for satellite internet services. Jio argued that satellite spectrum should be auctioned just like traditional telecom spectrum. This is important because companies like Jio have spent over ₹1.5 lakh crore in spectrum auctions to build their networks. If a global player like SpaceX were allowed to enter without paying similar fees, it would give Starlink an unfair advantage. On the other side, Starlink and other international satellite operators pushed for administrative allocation as is usually done globally, where spectrum is assigned without auctions. Following the recent Indian government’s decision to allocate satellite spectrum administratively rather than through auctions, it became significantly cheaper and easier for companies like Starlink to operate in India. This approach aligns with global practices and India’s obligations under International Telecommunications Union (ITU) standards. Interestingly, post this decision, the narrative shifted from resistance to collaboration. Jio, which once lobbied hard to keep Starlink out of India, issued a statement saying: “Through this agreement, the parties will leverage Jio’s position as the world’s largest mobile operator in terms of data traffic and Starlink’s position as the world’s leading low Earth orbit satellite constellation operator to deliver reliable broadband services across the country, including the most rural and remote regions of India.” As of now, Starlink has yet to receive a commercial license to operate in India.

The Shutdown Dilemma

Unlike Jio or Airtel, which remain under Indian regulatory frameworks, Starlink operates outside the national telecom regime. Its terminals connect directly to satellites, bypassing local infrastructure entirely. This independence gives it an edge in connectivity but poses serious concerns regarding national security.
In conflict zones or during conflagrations, governments may impose internet shutdowns as a lawful measure; as seen during recent incidents such as the Nagpur riots or unrest in Manipur or Kashmir. However, Starlink’s setup makes it very difficult if not impossible for law enforcement agencies to enforce such shutdowns especially if terminals are smuggled in or deployed unofficially.
This concern is not entirely hypothetical; precedents exist:

● Sudan- Rebel groups used Starlink terminals during civil unrest.
● Myanmar- Pro-democracy activists circumvented military-imposed internet shutdowns.
● Manipur- Reports suggest terminals may have aided unauthorized communications during recent Kuki-Meitei violence.
In each case, the technology enabled unauthorized communication sometimes aiding insurgent or rebel
forces. Some might argue these are stray cases that cannot be considered mainstream. However, Starlink’s role in the ongoing Russia-Ukraine war has done little to assuage these doubts.
Starlink played a prominent role in Ukraine’s digital and defense resilience during its war with Russia. In the early stages of the conflict, the Ukrainian government requested Starlink terminals to maintain internet connectivity amidst cyberattacks and infrastructure destruction and SpaceX delivered. However, as the war progressed, serious concerns emerged about rising costs of new terminals and unpaid dues. In 2023, SpaceX restricted Starlink access in certain frontline regions affecting Ukrainian drone operations.

Elon Musk tweeted on March 9th 2025:

“I literally challenged Putin to one-on-one physical combat over Ukraine and my Starlink system is the
backbone of the Ukrainian army. Their entire front line would collapse if I turned it off. What I am sickened by is years of slaughter in a stalemate that Ukraine will inevitably lose. Anyone who really cares—really thinks—and really understands wants the meat grinder to stop. PEACE NOW!!”
This raises multiple questions about corporate neutrality and concentration of power in private hands that
could potentially decide geopolitical outcomes. For India, this is a major red flag as there are multiple strategic fault lines that could be vulnerable:

● Can a commercial entity especially a foreign one with its owner having strong political biases be trusted to uphold India’s sovereign interests during crises?
● What guarantees can SpaceX provide regarding non-interference in geopolitical issues?
● How can India ensure regulatory control and data sovereignty while allowing large conglomerates access to its wide user market?

Need For Strong Policy Guardrails

India has seen a growing number of legal cases shaping how internet access is managed—especially in
sensitive or conflict-prone regions. One key case worthy of revisiting in this context is Anuradha Bhasin v. Union of India (2020) where the Supreme Court ruled that internet access is protected under the right to freedom of speech. However, it also acknowledged that this right can be restricted in the interest of national security or public order and such restrictions must be proportionate and justified. But how this fits into transgressions by Starlink some deliberate others incidental in conflict areas remains unanswered.

Recently another development added complexity. X Corp (formerly Twitter), also owned by Elon Musk, took the Indian government to court challenging orders it argued were vague and violated free speech principles. If India already faces legal hassles with licensed platforms like X complying with its laws it can only imagine challenges posed by satellite internet services like Starlink that operate entirely outside Indian infrastructure and that too with a chequered history.

Starlink terminals connect directly to satellites making them hard for governments to regulate or shut down even during emergencies. This raises serious red flags in areas like Kashmir or Left-wing extremism-affected regions where controlling communication is imperative for maintaining order.

The Digital Divide- An Opportunity To Close The Gap

While risks are real, so are opportunities. According to NITI Aayog’s Strategy for New India @75, nearly 50% of rural households still lack reliable internet access. The most recent National Family Health Survey (NFHS-5) reported that as of 2023 only 37% of rural households had access compared to 69% urban households.
Satellite-based solutions could augment Union Government efforts reducing this gap supporting initiatives like Digital India, PM-WANI, BharatNet etc but unlicensed foreign players must be brought within legal folds though “how” remains elusive. Satellite internet can no doubt be a transformative force for digital inclusion but without proper checks and frameworks, it could mean inviting trouble that could also create regulatory grey zones and complicate law enforcement..

The question is not whether Starlink will come to India- it’s whether India will be ready for it.

Author’s Detail

Abhishek Ranga

(Program Manager – Public Policy in the Office of VC)