Elon Musk’s Starlink has officially submitted its acceptance for the key regulatory conditions which have been set by the Indian government. As per the sources, these norms are set to obtain a licence for satellite broadband services. The satellite internet service providing company has agreed to comply with strict security and data storage norms which have been mandated by the Department of Telecommunications (DoT).
Data storage and security compliance
As per the government’s requirements, Starlink will be storing all the user data within India and it further ensures that the data access for intelligence agencies, when necessary. These conditions are said to be important for any company which applies for telecom-related licences.
Request for relaxation for some norms
In a recent letter to the DoT, Starlink has requested certain relaxations on some conditions for the Indian market. These norms aim to comply gradually after securing the licence to operate in India, sources revealed. Despite this, the Indian government has further maintained a firm stance, that refuses to offer any exemptions for global companies like Starlink and Amazon’s Kuiper.
An application under the Home Ministry review
At present, Starlink’s application (mobile app) is reportedly under review by the Ministry of Home Affairs and security agencies. No further clarifications have been given by the government post receiving Starlink’s formal submission.
Trai finalizing Satellite Spectrum allocation
- The Telecom Regulatory Authority of India (TRAI) is in the process of deciding the methodology for allocating and pricing spectrum for satellite services.
- Officials anticipate satellite broadband services to roll out by the end of this year.
- The DoT is also working to finalize network authorizations for satellite-based telecom services as per the updated Telecom Act.
New licensing framework for satellite services
TRAI has proposed merging the GMPCS (Global Mobile Personal Communications by Satellite) and VSAT (Very Small Aperture Terminal) licences into a unified ‘Satellite-based Telecommunication Service Authorization’.
Telecom operators concerned about competition
Indian telecom companies, including Jio and Bharti Airtel, have raised concerns over potential competition from satellite broadband providers. They argue that satcom companies might attract urban subscribers, impacting traditional telecom businesses. Jio, in particular, has been advocating for satellite spectrum to be auctioned instead of being allocated administratively. However, the government remains firm on its decision to allocate satellite spectrum based on technical requirements rather than auctions.
Satellite internet pricing remains a challenge
According to JM Financial, Starlink and other satellite internet providers are pricing their plans between USD 10-500 per month. This excludes a one-time hardware cost of USD 250-380. This is significantly higher than the home broadband plans offered by Indian telecom operators, which start at just USD5-7 per month (around Rs 600).
Limited threat to Indian telecom service providers
Analysts at JM Financial believe that the satellite internet services pose a limited threat to Jio and Bharti Airtel’s home broadband business. At present, home broadband contributes around 6-10 per cent of the projected EBITDA for these telecom giants in FY2030.
Moreover, satellite internet plans come with data caps and slower speeds, while Indian telecom providers offer unlimited data with higher speeds. Experts suggest that satellite internet pricing needs to drop significantly to become viable in India’s price-sensitive market.
Amazon’s Kuiper lagging in India
Unlike Starlink, Amazon’s Kuiper is also a service which is long due to entering the Indian shores. It is said that the service is progressing slowly for the Indian market, as it has yet to launch its satellite constellation.
Industry executives speculate that while satellite broadband may not pose an immediate threat, it could disrupt the telecom sector in the long run.
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