Satellite Broadband Showdown: Airtel, Jio, and Elon Musk Clash in India
New Delhi: Telecom giants Airtel and Jio, along with visionary entrepreneur Elon Musk, will lock horns in India’s burgeoning satellite broadband sector. With the government’s decision to allocate spectrum administratively and incorporate it into the new telecom bill, commercial launches are being prepared.
Key players in this space include Bharti Group-backed OneWeb, Reliance’s Jio Satellite Communications, and Musk’s Starlink, all of which have secured global mobile personal communication by satellite (GMPCS) licenses.
Reliance’s Jio Satellite Communications, in collaboration with global partner SES, plans to launch additional satellites into orbit. Through their joint venture, Jio gains access to cutting-edge medium-earth orbit satellite technology, enabling the provision of high-speed, fiber-like services from space. Jio has already established an operational earth station in Kadapa, Andhra Pradesh, and is piloting JioSpaceFiber services across four locations in anticipation of spectrum allocation.
OneWeb is poised to conduct live demonstrations by the end of January. Having obtained the necessary licenses, including InSpace authorization, and nearing completion of earth stations in Mehsana, Gujarat, OneWeb aims to commence its services promptly, leveraging its existing commercial operations across various regions worldwide. With its two gateways in Gujarat and Tamil Nadu, OneWeb will collaborate with distribution partner Hughes Communications India Pvt. Ltd., ensuring market availability from day one of operations.
For Starlink, the satellite broadband services would require approval from the Indian National Space Promotion and Authorization Centre (IN-SPACe) before commercial launches can proceed. Although services could potentially commence in the second or third quarter of the upcoming financial year if satellite service regulations are promptly published, the timing may be impacted by the scheduled elections. Factors such as sector-specific regulations and completion of spectrum allocations will also influence the timeline.
The competition in the satellite broadband sector is expected to intensify upon the telecom bill’s enactment. Bharti Airtel and Vodafone Idea have expressed their support and appreciation for the progressive and forward-looking bill. Bharti Airtel’s Managing Director, Gopal Vittal, highlights the bill’s emphasis on streamlining licensing procedures, particularly the reform on right of way, which will expedite the deployment of telecom infrastructure, including 5G networks. The restructuring of penalties within the proposed bill, featuring a tiered system of graded penalties up to ₹5 crore per violation, also plays a significant role.
Vodafone Idea’s CEO, Akshaya Moondra, labels the Telecommunications Bill, 2023, as a pivotal moment in telecom reform.
“The bill carries several forward-looking provisions that will help deliver the benefits of digital connectivity to all our citizens. We warmly welcome the rationalization of penalties and the legal enforceability of right of way provisions, a long-standing request of the industry,” he said.
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