India has frozen Starlink’s final approvals, citing concerns over its reported use during the Iran conflict and doubts about compliance with national security requirements. This setback comes just days before SpaceX’s planned Nasdaq IPO, expected to be the largest in history, with Starlink central to its valuation.

India has effectively withheld the clearances required for Elon Musk’s satellite internet service Starlink to begin commercial operations in the country. Security agencies under the Ministry of Home Affairs have raised concerns after reports suggested that Starlink terminals were used during the Iran conflict, despite the service not being licensed in that region.

This has heightened fears in New Delhi about the government’s ability to regulate a US-based communications provider during periods of geopolitical tension.

Although Starlink obtained a Global Mobile Personal Communication by Satellite (GMPCS) licence nearly a year ago, which allowed it to prepare for operations and enter commercial agreements, this licence did not constitute final approval. Security clearance remains pending until the company can demonstrate how it would guarantee compliance with India’s stringent security requirements, given its global footprint and US ownership.

Officials are particularly concerned about the possibility of conflicting demands from foreign governments during crises.

Starlink had previously conducted security demonstrations before telecom authorities and a dedicated review panel, but Indian officials later sought additional clarifications and compliance measures.

The delay has also stalled a broader satellite-spectrum pricing proposal, which is essential for commercial satellite communication services in India. Although the Department of Telecommunications has finalised the framework, it has yet to be sent to the Union Cabinet for approval, leaving the entire sector in limbo.

The timing of this freeze is significant. SpaceX is preparing for what could be the largest IPO in history, targeting a valuation of around $1.75 trillion. Starlink is central to SpaceX’s revenue growth, but regulatory hurdles in major markets such as India highlight risks investors may have overlooked. India, the world’s most populous nation and one of the largest underserved broadband markets, remains out of reach for now.

The service is already shut out of China, and the Indian delay underscores the uneven nature of Starlink’s global expansion.

The Ministry of Home Affairs, the Ministry of Communications, and SpaceX have not immediately responded to requests for comment. For India, the issue is not just about market entry but about ensuring that foreign-controlled communications networks do not undermine national security during geopolitical crises.

The freeze reflects New Delhi’s cautious approach to balancing technological innovation with sovereignty concerns.

Agencies