Starlink To Service Only 20 Lakh Users In India: Centre

SUMMARY

MoS for telecom Pemmasani Chandra Sekhar noted that the upfront cost for satcom services will be “too high”, adding that the monthly tariffs for such offerings could be around INR 3,000

Meanwhile, a government official said that the norms for the allocation of satcom spectrum will likely be finalised in the next two months

TRAI has proposed a five-year tenure for spectrum allocation and fixed spectrum charges at 4% of satcom operator’s adjusted gross revenue

Minister of state (MoS) for telecom Pemmasani Chandra Sekhar has said that Elon Musk-backed satellite communication (satcom) operator Starlink will only be able to provide 20 Lakh connections in India.

As per news agency PTI, Sekhar also said that Starlink will offer speeds up to 200 Mbps in the country. “Starlink can have only 20 Lakh customers in India and offer up to 200 Mbps speed. That won’t affect telecom services,” the MoS added, allaying fears that the US-based satcom company would emerge as a threat to state-run BSNL and other telecom players.

Meanwhile, a government official reportedly attributed the cap on Starlink connections to the satcom operator’s existing capacity.

The minister also noted that the upfront cost for satcom services will be “too high”, adding that the monthly tariffs for such offerings could be around INR 3,000. He made the comments while speaking on the sidelines of a review meeting of BSNL.

Amid all these, the Centre has pushed the pedal on formulating rules for allocating satcom spectrum in the country.

Satcom Spectrum Allocation Rules On The Anvil

A government official told the news agency that the norms for allocation of satcom spectrum will be finalised in the next two months.

“Spectrum allocation rules are likely to be fixed in two months. After that, it will be at the discretion of satcom services when they want to roll out their services,” the official was quoted as saying.

With this, the likes of Starlink, Bharti Group-backed Eutelsat Oneweb and Jio SES will be able to apply for the spectrum and launch commercial services.

As per the report, the Telecom Regulatory Authority of India (TRAI) has steered clear of auction and recommended administrative allocation of satcom spectrum. In addition, the regulator has proposed a five-year tenure for spectrum allocation, which can be extended by an additional two years based on market conditions.

Alongside, the telecom regulator has suggested fixing spectrum charges for both geo-stationary orbit (GSO) and non-GSO-based fixed satellite services at 4% of adjusted gross revenue. It is pertinent to note that Eutelsat OneWeb and Starlink have deployed low earth orbit (LEO) satellites, which fall under the NGSO category.

Additionally, TRAI has recommended that NGSO-based fixed satellite service providers should pay an additional “subscriber charge” of INR 500 per annum for each customer in urban areas. Rural areas have been exempted from this levy.

The development comes as competition continues to heat up in the Indian satcom space. Recently, Starlink crossed the final regulatory hurdle after IN-SPACe gave its nod to the Elon Musk-led company to roll out satcom services in the country.

Meanwhile, Reliance-backed Jio SES and Eutelsat OneWeb have received the Global Mobile Personal Communication by Satellite (GMPCS) licence from the telecom department.

Then, there are giants like Amazon Kuiper and Apple vendor Globalstar that have also filed applications to acquire satcom licences in the country.

On the regulatory front, the Centre is targeting the “fastest rollout” of the satcom network in the world. As part of this, the Union government has further tightened norms for satcom applicants, including barring such players from processing the data of Indians overseas and instituting other safeguards.

Additionally, IN-SPACe has set a target to grant space authorisation within 120 days of receiving complete information from the applicants.