India has granted a key license to Elon Musk’s Starlink, bringing the satellite provider a step closer to launching its commercial internet services in the country, a top Indian government official said on Friday.

“Yes. License has been granted,” said the official with direct knowledge of the matter at the department of telecommunications. The official declined to be identified because the information isn’t public.

The approval comes at a time when Musk is embroiled in a public spat with U.S. President Donald Trump, which threatens billions of dollars’ worth in contracts between Starlink and the U.S. government.

Prime Minister Narendra Modi and Musk met in the U.S. in February, when the two discussed the company’s long-delayed plans for India.

In March, Starlink signed agreements with India’s top two telecom operators—Reliance Jio and Bharti Airtel—to bring the U.S. satellite internet giant’s services to the world’s most populous country.

At least 40% of India’s more than 1.4 billion people have no access to the internet. Cheap satellite broadband is needed to bridge this gap, particularly in India’s vast remote and mountainous rural areas.

The department of telecommunications recently approved a similar license for Reliance Jio, the country’s biggest telecom service provider owned by billionaire Mukesh Ambani.

The next phase for Musk’s company would be to secure a separate approval from India’s space regulator and secure airwaves used for telecommunications from the government, which may take at least a couple of months.

The company would also need to showcase through testing and trials that it meets local security rules which it has agreed to while securing the license.

But the biggest challenge Musk’s company faces is pricing as mobile data in India is among the world’s cheapest. Ambani’s Jio once even provided it for free with mobile plans.

Starlink operates the world’s largest satellite constellation with over 6,750 satellites currently orbiting Earth to provide low-latency broadband, including to areas where internet previously has been completely unavailable.

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