In a significant regulatory setback for Elon Musk’s satellite venture, India’s space regulator, IN-SPACe, has rejected Starlink’s application to deploy its second-generation (Gen 2) satellite constellation.
As of January 27, 2026, this decision effectively blocks the launch of Starlink’s highly anticipated Direct-to-Device (D2D) internet service in India, which would have allowed standard smartphones to connect directly to satellites in remote areas.
1. Why the Gen 2 Application was Rejected
While the government has granted a license for Starlink’s Gen 1 constellation (supporting traditional fixed broadband), the more advanced Gen 2 system failed to clear the final hurdle for two primary reasons:
- Frequency Band Conflicts: The Gen 2 satellites operate on frequency bands that are currently not permitted for use in India under existing telecommunications laws.
- Technical Non-Compliance: Regulators cited that the system did not meet specific technical and security requirements mandated by the Department of Telecommunications (DoT).
2. Impact on Direct-to-Device (D2D) Services
The rejection of the Gen 2 constellation is a specific blow to D2D technology. Unlike traditional satellite internet, which requires a large dish and router, D2D enables “dead zone” connectivity for SMS and emergency calls on regular LTE/5G phones.
- Regulatory Void: India currently has no defined regulatory framework for satellite-to-phone connectivity.
- Telco Opposition: Major Indian telecom operators (Jio, Airtel, Vi) have lobbied for a “level playing field,” arguing that satellite firms should be subject to the same auction-based spectrum rules as terrestrial mobile providers.
- Delayed Timeline: Without Gen 2 approval, Starlink cannot deploy the specialized “cell tower in space” technology it has successfully piloted with T-Mobile in the United States.
3. Intense Security Scrutiny in 2026
The rejection coincides with a period of “hyper-scrutiny” regarding Starlink’s global operations.
- The Iran Precedent: Indian officials recently cited concerns over Starlink’s operation in Iran without local authorization, leading to fears about unauthorized satellite usage in sensitive border regions like Manipur and Ladakh.
- Mandatory Interception: India requires all satellite traffic to be routed through local gateways to allow for lawful interception. Starlink is still working to satisfy these “security boxes” before its traditional broadband service can begin commercial sales.
4. Current Status: What is Allowed?
| Feature | Status (as of Jan 27, 2026) |
| Traditional Broadband (Gen 1) | Approved (Pending final security clearance/trial spectrum). |
| Direct-to-Device (D2D) | REJECTED (Requires fresh Gen 2 application). |
| Operating Licenses | GMPCS & VSAT Licenses Secured in 2025. |
| State Partnerships | Maharashtra and Goa have signed pacts for rural connectivity. |
Conclusion: A “Broadband-First” Strategy
For now, Starlink’s entry into India will be limited to its “vanilla” broadband service for homes and businesses in remote areas. To launch D2D, the company must now submit a fresh application that addresses the specific frequency concerns of the DoT. While Union Minister Jyotiraditya Scindia recently met with SpaceX executives to discuss “last-mile access,” the message remains clear: technology must wait for policy.
