In 2011, India’s space ambitions collided with scandal when the Antrix-Devas deal unraveled amid allegations of fraud and national security risks. Fast forward to 2025, and the government is rolling out the red carpet for Elon Musk’s Starlink, despite striking similarities in spectrum allocation. Why is one labeled a “scam” while the other hailed as progress?
Why did IT Minister @AshwiniVaishnaw delete his tweet welcoming Starlink?
BJP falsely accused UPA of corruption when there was none, but now they have bypassed auctions and distributed spectrum administratively.
They are bending over for Elon Musk and Trump, risking national… pic.twitter.com/1y51aHeHli
— Dr. Shama Mohamed (@drshamamohd) March 13, 2025The Rise and Fall of the Antrix-Devas Deal
A Promise of Satellite Innovation
In 2005, Devas Multimedia partnered with ISRO’s commercial arm, Antrix, to lease S-band spectrum for satellite-based internet services targeting underserved areas. The deal aimed to use two ISRO satellites (GSAT-6 and 6A) to deliver multimedia services, with Devas investing ₹579 crore in foreign funds.
Controversy Erupts
By 2011, the UPA government canceled the agreement, citing “national security” needs for the S-band spectrum amid the 2G scam fallout. Investigations later alleged fraudulent incorporation of Devas, money laundering, and collusion between former ISRO officials and the company.
Legal Battles Go Global
Devas’ foreign investors won $1.2 billion in arbitration awards, but Indian courts upheld Devas’ liquidation in 2021, calling the company a “fraudulent venture”. Critics argue the cancellation was politically motivated, while the government maintains it prioritized strategic interests.
Starlink’s Entry: A New Chapter or Déjà Vu?
Similarities Under the Lens
Like Devas, Starlink seeks administrative allocation of space segment spectrum (Ku and Ka bands) under India’s 2023 Telecom Act. Both projects bypassed auctions, leveraging legal provisions for satellite services.
Key Differences
- Technology Readiness: Devas lacked operational satellites and distribution tech, while Starlink has 7,000 low-orbit satellites already in space.
- Timing: The Antrix-Devas deal collapsed during the 2G scandal’s peak, whereas Starlink enters a market hungry for digital expansion.
- Strategic Silence: While military concerns doomed Devas, similar spectrum demands for (used by Indian defense satellites) face no public scrutiny.
The Double Standards Debate
Government’s Stance
Officials defend Starlink’s allocation by emphasizing its proven tech and India’s push for global tech partnerships. A 3% spectrum usage charge on Starlink’s revenue hints at efforts to preempt financial criticism.
Critics Cry Foul
Opponents argue that Devas’ foreign investors were penalized for lacking clout, while Starlink benefits from geopolitical alignment. Telecom giants like Reliance Jio and Airtel, once opposed to administrative allocations, now partner with Starlink, raising antitrust concerns9.
Legal and Regulatory Gray Zones
Spectrum Allocation: Then vs. Now
- 2005/2011: Administrative allocation was legal but criticized as “non-transparent” post-2G.
- 2023: The Telecom Act explicitly permits non-auction allocation for satellite services, shielding Starlink from similar backlash.
Unanswered Questions
- Why did committees in 2011 flag S-band security risks but ignore Ka/Ku-band concerns for Starlink?
- Will India’s “fraud” claims against Devas hold if Starlink’s allocation faces legal challenges abroad?
FAQ
Why was the Antrix-Devas deal canceled?
Officially, due to national security needs and fraud allegations. Critics argue political pressure during the 2G scandal played a role.
What legal victories did Devas achieve internationally?
Devas won $1.2 billion in ICC arbitration, but Indian courts blocked enforcement, citing fraud.
How does Starlink’s spectrum demand differ from Devas’?
Starlink uses Ku/Ka bands (also used by Indian military satellites), yet faces no public security debates.
Is administrative allocation of spectrum legal?
Yes, under both the 2015 guidelines and 2023 Telecom Act, but Devas’ timing turned it into a scandal.
Could Starlink face a Devas-like termination?
Unlikely, given its tech credibility and India’s current pro-investment stance, but legal risks remain if policies shift.
What role did ISRO officials play in the Devas deal?
Former ISRO chairman G. Madhavan Nair and others were charged with criminal conspiracy in 2016.
How did the 2G scam impact the Devas deal?
Media comparisons to 2G losses pressured the UPA to annul the deal, despite differing legal contexts.
