India’s satcom sector, poised to revolutionise connectivity across remote and underserved regions, is now facing a regulatory puzzle. The Telecom Regulatory Authority of India is considering a significant change that could require satellite communication providers to go through a new application and approval process before launching their services. While companies currently hold licences for satellite-based broadband, a recent TRAI consultation paper has sparked debate over whether separate authorisations should be required for various satcom services, specifically for satellite earth station gateways. This move, aimed at clarifying and potentially strengthening regulatory oversight, could impact both established providers and new entrants in India’s growing satcom market.
At present, there is no clear indication as to whether existing licence holders would automatically qualify for new licenses or would need to restart the application process. In response, the department of telecommunications (DoT) requested that the regulator consider separate authorisations specifically for satellite communication. The final decision on satcom service authorisations will now depend on stakeholder feedback gathered from TRAI’s consultation process.
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Indian vs foreign satcom providers
India’s $3 trillion telecommunications sector is increasingly looking to emerging technologies like 6G and satcom to drive growth. A recent report by KPMG emphasises the essential role satcom services could play in further connecting the country, underscoring its status as a “next big step” for the sector.
This potential has sparked a rivalry between Indian telecom giants and foreign satcom providers such as Elon Musk’s Starlink and Amazon’s Project Kuiper, as their entry into the Indian market would heighten competition. Currently, Bharti Enterprises-backed Eutelsat OneWeb and Reliance Jio’s Jio Space are competing in this space.
Besides Starlink and Project Kuiper, other international companies like Rivada Networks, Viasat, Sateliot, Telesat, and Globalsat have shown interest in India’s satcom market. These companies have appealed to TRAI for regulatory reforms and lower spectrum charges to facilitate market entry, aiming to make satcom services more affordable.
Both Starlink and Project Kuiper have faced significant obstacles in obtaining the GMPCS (Global Mobile Personal Communications by Satellite) licence, largely due to challenges in meeting India’s mandatory ownership disclosure regulations. Additionally, they need to secure spectrum for their services. Satellite or orbit spectrum, a segment of radio frequencies available when satellites are placed in orbit, remains a crucial requirement.
Indian telecom operators are advocating spectrum auctions, while foreign companies argue that spectrum should be administratively allocated, as seen in global practices. Bharti Enterprises Chairman Sunil Bharti Mittal has emphasised the need for uniform legal conditions across satcom providers and traditional telecom operators, including licence fees and spectrum purchases. Reliance Jio contends that spectrum auctions are essential to establish a level playing field between satellite and terrestrial services.
The way ahead for satcom services
India’s satcom sector is positioned for rapid growth, with projections estimating it could reach a value of $20 billion by 2028. Currently valued at $2.3 billion, India ranks fourth globally in terms of satcom investment, with nearly $2 billion invested across 110 domestic firms, according to KPMG. The recent opening of the sector to private players has spurred innovation and competition. As India considers allocating spectrum administratively rather than via auction, international players are increasingly attracted to the market, which is expected to heighten competitiveness.
Given India’s diverse geography and the fact that around 25% of the population lives in areas unreachable by traditional terrestrial networks, satcom technology offers a viable solution to bridge the digital divide. By extending digital connectivity to underserved regions, satcom can play a pivotal role in connecting remote and rural areas. The arrival of foreign players is likely to benefit consumers by making this technology more accessible and affordable, ultimately extending digital infrastructure to even the most isolated parts of India.
India’s burgeoning satcom sector requires a supportive policy framework to fuel its expansion. This could involve creating a comprehensive space law to protect domestic industry interests and foster international cooperation. The government could also consider implementing a Production-Linked Incentive (PLI) scheme similar to those successfully used in electronics and telecommunications to encourage investment in space infrastructure and technology.
Industry stakeholders also advocate careful deliberation on the choice between spectrum auctions and administrative assignment, keeping in mind the long-term objective of reducing social disparities through spectrum-enabled connectivity.