Elon Musk’s Starlink has submitted its formal acceptance of the key conditions set by the government to secure a licence for launching satellite broadband services in the country, according to sources.
The company has specifically accepted the security and data storage requirements mandated by the government, sources said.
These guidelines require the company to store all user data within the country and ensure it can facilitate data interception by intelligence agencies when needed. This is a prerequisite for obtaining any licences under the DoT.
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In a recent letter to the department of telecommunications (DoT), the company has also requested relaxation on some conditions, which it aims to comply with over a period once its application is approved, the sources stated.
Currently, Starlink’s application is being evaluated by the ministry of home affairs and security agencies. The government, however, has maintained a firm stance, making it clear that it will not relax any norms for global players like Starlink and Amazon’s Kuiper.
After Starlink’s formal submission, the government has not sought further clarifications.
The Telecom Regulatory Authority of India (Trai) is in the process of finalising the methodology for allocating and pricing spectrum for satellite services. Officials said the satellite services are expected to get started by the end of this year.
While Trai’s recommendations on satellite spectrum are pending, simultaneously work within the DoT is also going on to finalise the network authorisations for satellite-based networks as per the Telecom Act.
Trai has proposed merging the GMPCS (Global Mobile Personal Communications by Satellite) and VSAT (Very Small Aperture Terminal) licences into a single authorisation called the “Satellite-based Telecommunication Service Authorization”.
Telecom service providers have been advocating for a level-playing field between satcom and telecom operators owing to potential competition. The concern of the telcos is that companies like Starlink might poach their subscribers by providing services in urban areas.
Jio, one of India’s leading telecom operators, has been continuously pushing for auctioning of satellite spectrum.
The government, however, is not changing its stance and will go ahead with administrative allocation of spectrum citing the technical nature of satellite services.
According to JM Financial, Starlink (and other satcom companies) have priced satellite internet plans at $10-500 per month excluding one-time cost for hardware (which is $250-380). The pricing is 7-18 times more expensive than Indian telcos’ home broadband plans that start from $5-7/month (around Rs 600).
“Satellite internet poses limited threat to Bharti/Jio’s home broadband segment; home broadband doesn’t constitute more than 6-10% of FY30 Ebitda and valuation for Bharti/Jio,” said Dayanand Mittal and Shivam Gupta, analysts at JM Financial.
Further, satellite internet companies provide plans with data caps and limited speed while Jio and Bharti provide unlimited data and higher speed. Hence, satellite internet pricing needs to reduce sharply to become competitive in the price-conscious Indian market, the analysts at the brokerage house said.
Amazon’s Kuiper, however, is moving slow on its application in India. This is because the company is yet to launch its satellite constellation.
According to industry executives, satellite internet by Starlink and Kuiper may pose a threat to telecom operators’ market in the long run.