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India Emphasizes Need for Satellite Internet in Rural Areas
India’s Communications Minister, Jyotiraditya Scindia, has highlighted the urgent necessity for satellite internet, particularly in the nation’s rural regions, signaling a favorable regulatory environment for companies like Elon Musk’s Starlink, which aims to establish services in India.
Scindia stated during an interview in New Delhi, “Many remote areas lack the infrastructure for fiber or mobile connectivity. Achieving full saturation in connectivity without satellite internet is impossible.” He emphasized that satellite services are critical for maintaining connectivity during natural disasters that could dismantle traditional towers and fiber networks.
Stressing that satellite services are complementary to terrestrial options, Scindia reinforced the Indian government’s commitment to offering a diverse array of communication solutions to consumers, including fiber and satellite options. This position underscores the government’s support for global entities interested in entering the Indian market, such as Starlink, Amazon’s Project Kuiper, and OneWeb.
Starlink has yet to obtain a regulatory license necessary for commencing operations in India, as it awaits information on local regulations regarding spectrum pricing. However, recent developments are working in favor of the U.S. company.
Just last week, Starlink forged partnerships with two major Indian wireless operators, Reliance Jio Infocomm, led by Mukesh Ambani, and Bharti Airtel, owned by Sunil Mittal. This collaboration has helped win over critics who previously opposed Starlink’s bid for affordable airwaves.
‘Open Market for All’
“India’s market is open for anyone and everyone who wants to come and participate in this large market and provide a service,” Scindia remarked. He emphasized that the ultimate decision rests with consumers regarding their choice of service provider.
The minister refrained from specifying when Starlink might receive its license or the anticipated costs for satellite internet providers in terms of airwaves. The country’s telecom regulator is currently drafting regulations that will determine how spectrum is priced, which in turn will affect the pricing structure for satellite broadband in India.
As the second-largest internet market globally, trailing only China, India offers exceptionally low phone data charges of approximately $0.11 per gigabyte, making the competitive landscape challenging for new entrants in a market sensitive to pricing.
Regulatory Standards and Security Considerations
Scindia clarified that the pricing of satellite internet services will be left to the companies themselves. However, international firms, including SpaceX’s Starlink, must first address India’s internal and external security stipulations prior to obtaining a license. Competitors like OneWeb and Reliance Jio’s JioSpaceFiber have already secured local licenses to commence operations.
“In the long run, economies of scale will play a crucial role,” Scindia noted. “For now, it’s essential to allow the market to establish itself first.”
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