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That's the reason for the ban?

Yes. It was discovered to be used by terrorists in the past (esp. the 2008 Mumbai attacks).

No, it's the government's excuse to crack down on foreign journalists poking their noses into places where they don't want them to go (Maoist insurgencies, for example). Getting a "burner" phone in India on GSM networks is ridiculously easy and costs about ten bucks. Actual terrorists like Laskar-e-Taiba are well aware that using a satellite phone is one of the quickest and most effective ways to get your calls listened to by the NSA. Iridium has effectively zero security and all of its calls pass through a few centralized gateways.

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