India's Ministry of Home Affairs freezes Starlink launch over security fears

The regulatory impasse highlights the collision between borderless satellite technology and regional sovereignty. For SpaceX, the delay creates a valuation bottleneck just as the company tests public markets, potentially cooling investor appetite for its Starlink revenue projections. In the local market, the freeze grants a strategic window for Jio and Eutelsat OneWeb to finalize their own terrestrial compliance while Starlink remains sidelined from direct commercial sales. Watch for the Department of Telecommunications to release the finalized spectrum pricing framework, which currently awaits federal Cabinet approval.

The regulatory friction in India coincides with SpaceX’s record-breaking initial public offering on the Nasdaq. Per The Guardian (June 2026), SpaceX shares closed their first day of trading at $160.95, a 19% jump that valued the company at $2.1 trillion. While the IPO was a financial success, investment filings revealed that SpaceX's profitability remains heavily dependent on Starlink’s global expansion to offset billions in annual losses from its rocket development programs. Analysts note that Starlink currently serves over 10 million customers across 164 countries, yet expansion remains restricted in major markets like China.

Simultaneously, India has intensified oversight across the entire satellite communications sector. Per Communication Today (June 2026), the Department of Telecommunications issued 29 new regulations in May 2026, mandating that all user data and call logs be stored on Indian soil. These rules require operators to maintain interception capabilities accessible to local intelligence agencies. Rivals such as Eutelsat OneWeb and the Jio-SES joint venture are also undergoing a higher level of scrutiny, though officials reportedly view these partnerships as less problematic due to their established ties to Indian incumbents Bharti Airtel and Reliance Industries.

Amazon is also attempting to enter the Indian market through its satellite arm, recently rebranded as Amazon Leo. Per TRAI filings (May 2026), Amazon Leo has over 300 satellites in orbit and is moving to position itself as a government infrastructure partner rather than a direct-to-consumer provider. This strategy aims to secure access to the Digital Bharat Nidhi fund by providing backhaul for rural Wi-Fi hotspots. However, despite the different commercial framing, Amazon must still clear the same Ministry of Home Affairs security hurdles currently stalling Starlink's commercial activation.