--- title: "SpaceX Faces Headwinds on Eve of IPO: India Halts Starlink Approval Over Security Concerns" type: "News" locale: "en" url: "https://longbridge.com/en/news/289213528.md" description: "India has frozen the final approval for Starlink's commercial operations, citing national security concerns. The decision stems from the fact that Starlink is not authorized in Iran, yet its satellite terminals have appeared in Middle East conflicts, raising doubts in New Delhi about the controllability of the U.S. operator during periods of geopolitical tension. SpaceX plans to go public on June 12, with Starlink serving as its core revenue engine and a critical driver of its valuation" datetime: "2026-06-09T15:44:25.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/289213528.md) - [en](https://longbridge.com/en/news/289213528.md) - [zh-HK](https://longbridge.com/zh-HK/news/289213528.md) --- # SpaceX Faces Headwinds on Eve of IPO: India Halts Starlink Approval Over Security Concerns **India has effectively frozen the final approval for Starlink's commercial operations, citing national security concerns**, stalling the expansion of SpaceX's satellite internet service in one of the world's largest underserved broadband markets. According to Bloomberg, security agencies under India's Ministry of Home Affairs have withheld the final permit required for Starlink to commence commercial operations. The core concern is that **although Starlink is not authorized in Iran, its satellite terminals have been found in Middle East conflicts. This situation has raised doubts in New Delhi about the controllability of the U.S. operator during periods of geopolitical tension.** Meanwhile, the pricing framework for satellite spectrum, which is required for any satellite operator (including Starlink's local Indian competitors) to enter the commercial market, has also stalled. The Indian Ministry of Telecommunications has completed the relevant framework but has not yet submitted it to the Cabinet for review. These setbacks come just days before SpaceX's expected IPO. Reports indicate that SpaceX plans to list on the Nasdaq on June 12, targeting a valuation of $1.75 trillion, which would set a record for the largest IPO in history. As SpaceX's core revenue engine, Starlink is crucial to this valuation. The hurdles in the Indian market highlight a risk that potential investors may have overlooked: Starlink's global expansion is far from smooth sailing. ## **Security Concerns: Iran Conflict Triggers Chain Reaction** **The escalation of India's security review of Starlink stems directly from reports regarding the use of satellite terminals during the Iran conflict.** Insiders stated that given Starlink's global coverage scale and its U.S. parent company background, Indian officials have demanded explanations on how the company ensures compliance with Indian security regulations when foreign governments make conflicting demands due to geopolitical maneuvering. The relevant security permits remain pending. Previously, Starlink conducted security demonstrations in India last year and underwent reviews by telecommunications authorities and special security assessment teams. However, Indian officials have since continued to raise additional inquiries and demand further compliance measures. Notably, this intensified scrutiny is not limited to Starlink. Insiders revealed that following the Iran conflict, Indian officials have generally adopted a more cautious stance toward the entire satellite communications industry. Domestic operators with partnerships with European satellite communication service providers—Jio Infocomm, under Reliance Industries, and Bharti Airtel—are also facing stricter scrutiny, although they are considered to have fewer issues. ## **Regulatory Path: License Held, Key Approval Missing** From a regulatory perspective, Starlink has not made zero progress. About a year ago, Starlink obtained a Global Mobile Personal Communication by Satellite (GMPCS) license in India, allowing it to sign agreements and prepare for operations. It was originally expected to officially launch months ago. However, this license is only one step in a broader regulatory process, which has since stalled. In terms of on-the-ground deployment, Starlink has established approximately 10 gateway stations in India and set up a hub in Mumbai. Company executives have also met repeatedly with Indian ministers and government officials to actively push the approval process forward, submitting written statements emphasizing their compliance with India's local data storage requirements. **However, insiders stated that India will not give Starlink the green light until security concerns are resolved.** SpaceX is aiming for an IPO with a target valuation of $1.75 trillion, with one of its core narratives being the expansion potential of Starlink as a global leader in satellite internet. For investors evaluating this potential record-breaking IPO, **geopolitical friction in Starlink's global expansion path may be a risk that has not yet been fully priced in.** ### Related Stocks - [SPCX.US](https://longbridge.com/en/quote/SPCX.US.md) ## Related News & Research - [An army of everyday investors is ready to launch the SpaceX IPO](https://longbridge.com/en/news/289484235.md) - [SpaceX IPO is emblematic of space economy future: Alumni Ventures' Rippy](https://longbridge.com/en/news/289517764.md) - [Tradr ETFs Set for Liftoff Alongside SpaceX IPO](https://longbridge.com/en/news/289495858.md) - [How big will SpaceX be in 5 years? Here's what the experts are saying.](https://longbridge.com/en/news/289502458.md) - [Elizabeth Warren asks the SEC delay the SpaceX IPO](https://longbridge.com/en/news/289343335.md)