Starlink, Amazon Kuiper Ink First Satellite Broadband Deals In India: Report

Elon Musk-led Starlink and Amazon-backed Project Kuiper have reportedly signed their first commercial agreements with VSAT players in India, marking a step towards launching enterprise and government-focused satellite broadband services in the country.

A Moneycontrol report, citing sources, said that these partnerships have been formalised even before the official allocation of satellite spectrum. 

“Both Starlink and Amazon have been working to form partnerships in India. They are already scouting VSAT partners and have secured a few in India, focusing on the B2B and B2G spaces,” a source told the publication.

VSAT service providers are companies that offer satellite-based communication services using very small aperture terminal (VSAT) technology. 

They offer communication services in areas where traditional wired infrastructure (like fibre or cable) is unavailable or less reliable, making them essential for industries such as banking, stock exchanges, retail, oil & gas, maritime and remote offices.

While Starlink has recently secured a GMPCS licence and is awaiting approval from IN-SPACe, Amazon Kuiper is yet to receive both the approvals.

Hughes Communications India CEO Shivaji Chatterjee reportedly said the company is in talks with all LEO-based satellite players in India and as a key incumbent will likely be one of their main go-to-market partners for the B2B and B2G segments.

This comes as a backdrop to Starlink inking a partnership with Reliance Jio and Airtel to bolster its distribution model in India. Earlier this month, the Jeff Bezos-led company was also said to be eyeing a satcom licence in India and has already submitted the required documents to the government.

As part of its India plans, Kuiper aims to establish 10 gateways and two points of presence (PoPs) in Chennai and Mumbai. It also aims to launch an initial satellite constellation comprising 3,232 low earth orbit (LEO) satellites.

So far, only Starlink, Bharti Enterprises-backed Eutelsat OneWeb and Reliance Jio’s satcom venture Orbit Connect India have received GMPCS permits from the government.

The Cost Conundrum

As per a Jefferies report, Starlink may also adopt a premium pricing model in India due to its limited bandwidth capacity, a move that could further restrict its accessibility in price-sensitive markets.

Starlink’s commercial viability in India still remains uncertain with pricing being a key concern. Industry estimates suggest that Starlink’s monthly subscription costs could range between INR 3,000 and INR 7,000, depending on the plan and region.

In addition, customers would have to bear a one-time cost of INR 20,000 to INR 35,000 for the user terminal kit, which includes a satellite dish and Wi-Fi router. However, there is no clarity on Amazon’s Project Kuiper’s pricing structure for the Indian satellite broadband market.

India’s geographical region and dense population necessitate a different form of internet infrastructure, particularly in the country’s sparse and rural regions where installing fibre-optic cables is exorbitantly expensive.