Satellite broadband in India inched closer to turning to reality earlier this week when Elon Musk-founded SpaceX registered its business in the country, paving the way for the subsidiary to begin applying for licenses from local governments.
Taking to Linkedin to unveil the registered subsidiary, Starlink Satellite Communications Private Limited, Starlink India director Sanjay Bhargava said, “Pleased to share that SpaceX now has a 100% owned subsidiary in India.” According to reports, the company plans to roll out services across 200,000 active terminals in more than 160,000 districts by 2022.
India is set to turn into a battleground for two of the world’s richest businessmen, Elon Musk and Jeff Bezos as both prepare to roll out their respective satellite broadband services in the country. Last month, a report from The Times of India revealed that both, Musk’s Starlink as well as Amazon’s Kuiper had engaged in individual consultation with India’s telecom ministry along with the Department of Space, as they forge ahead with the launch of their respective satellite-based internet services in India. However, the report noted, both “are yet to apply for a license through the formal route.”
Earlier this year, reports emerged of Amazon sinking over $10 billion into building a constellation of 3,236 low-earth orbit (LEO) satellites aimed at beaming down internet to users, however, detailed plans for India have yet to be revealed. India, unsurprisingly, has been identified as one of the key emerging markets to launch Kuiper in, with Amazon estimating the near-term opportunity at roughly $500 million.
In recent years, India has made significant headway in driving up mobile internet penetration rates but, as per some reports, almost 75 per cent of the rural population still do not have access to broadband internet due to a lack of fibre and cellular connectivity. While costs remain high at the moment, LEO satellite systems are viewed as a viable alternative.
And in September, a SpaceX Falcon 9 rocket deployed an additional 60 Starlink satellites across what is already a mammoth constellation comprising roughly 1,300 satellites. The launch was the first since May when an additional 60 satellites were deployed. The company is hoping to take this number up to 40,000 in due time.
In February, SpaceX noted that it was already proving its satellite internet service to around 10,000 customers, adding that Starlink was no longer “theoretical and experimental.”
And in March, Starlink began allowing Indian users to pre-order its services across several locations around the country for a completely refundable payment of $99 (roughly Rs 7,200). Orders, according to the Starlink website, will be fulfilled on a first-come, first-served basis.
But Amazon’s Kuiper and SpaceX’s Starlink won’t have the entire Indian market all to themselves. On May 28, a successful launch of 36 satellites saw OneWeb’s LEO satellite constellation grow to 218.
As per some reports, it needs to undertake only one more launch before it can enable its ‘Five to 50’ service, aimed at providing connectivity to all regions north of 50 degrees latitude. The TOI report noted that OneWeb has already received a national long-distance license (NLD) license from the telecom department.
OneWeb, a company that was about to declare bankruptcy in 2010 before it received a fresh flow of investment from the Sunil Mittal-led Bharti Group along with the UK government, is also readying its satellite internet services to launch next year. However, while Kuiper and Starlink will include targeting urban internet users, OneWeb’s services are, reportedly, exclusively looking at empowering the rural population with internet connectivity.
The entrance of three players into the LEO satellite internet service space can only be a good thing for the average internet user. A competitive satellite broadband space will promise increased innovation and, ultimately, make the internet more affordable for everyone.
