SpaceX’s aspirations to acquire millions of fresh subscribers for its satellite internet service may falter due to the Indian government’s concerns regarding the company’s adherence to its regulations.

SpaceX received approval to start operations in India in 2025, following extensive lobbying efforts in New Delhi. While steps have been taken towards launching the service there, Bloomberg now indicates that Indian authorities have halted the initiative after SpaceX permitted Starlink to function in Iran without legal authorization.

“Starlink is actively engaged in fruitful discussions with the Government of India, contrary to misleading reports based on unfounded assertions from unnamed sources,” stated SpaceX VP of Starlink operations Lauren Dreyer in a social media update. Bloomberg did not mention that talks had ceased.

Postponements in delivering the service in India could pose a challenge ahead of SpaceX’s IPO, where financial reports revealed a slowdown in Starlink’s customer acquisition.

The worth of SpaceX’s Starlink system relies on the number of nations where it can provide service; there’s a fixed cost associated with developing global infrastructure, and profits depend on the volume of subscribers. Market access is attained on a country-by-country basis, with numerous governments aiming to safeguard domestic telecom companies through joint ventures or establishing direct governance over who can access the service and in what manner.

India has imposed stipulations on local data storage and network safety that SpaceX has sought to fulfill. However, unnamed sources informed Bloomberg that officials are apprehensive about their ability to truly oversee Starlink, following its unauthorized activities in Iran.

SpaceX’s oversight of the network has previously been contentious. Ukrainian forces utilizing Starlink in defense against a Russian invasion expressed frustration after being disconnected from the service in 2022, when Musk grew worried about their situation. Discussions between Starlink and the government of Taiwan have not advanced due to Musk’s prior statements that the region is part of China and the company’s seeming reluctance to collaborate with local entities.