Amazon has begun assembling its team and hiring for key positions in its Project Kuiper satellite communications (satcom) project, while it awaits a satcom licence from the Department of Telecom (DoT) and regulatory clearance from Indian National Space Promotion and Authorisation Centre (In-SPACe).
The move comes as the Telecom Regulatory Authority of India (TRAI) initiated a consultation process on September 27 to determine the methodology and pricing for allocating spectrum to satellite-based communications providers, which will enable them to offer services such as calling, messaging, broadband, and more across the country.
The e-commerce major has posted multiple job openings on the professional networking platform, LinkedIn. The positions include consumer go-to-market (FTM) strategy lead for India, head of telco business development, and project managers for business-to-business (B2B) and business-to-consumer (B2C) verticals. Amazon has also hired the regulatory head from OneWeb.
Rahul Savoor, the company's South Asia strategy lead, is heading Amazon Kuiper Services India Private Limited. Amazon's Project Kuiper is slated for a global launch in the fourth quarter of the financial year.
Company sources told Moneycontrol that all key positions, including the India go-to-market (GTM) strategy lead, will report to Savoor. Amazon plans to ramp up its headcount after obtaining necessary approvals from the DoT and In-SPACe.
Queries were sent to Amazon, and the DoT did not elicit any response at the time this article was published. "IN-SPACe does not comment on applications which are under process," a spokesperson said in a statement to Moneycontrol.
Race for satellite-based broadband service hots up
Amazon, through its subsidiary Amazon Kuiper Services India Private Limited, aims to enter India's satellite-based broadband market. It will compete with Elon Musk-owned SpaceX, Bharti-backed Eutelsat OneWeb, and Orbit Connect India, which is a joint venture between Jio Platforms and the Luxembourg-based satellite communication company, SES.
The company has applied for a global mobile personal communication by satellite services (GMPCS) licence from the DoT and regulatory approval from IN-SPACe. Government sources have indicated that the respective departments are reviewing the applications.
The GMPCS licence is the first step towards setting up a satellite internet by acquiring a trial spectrum at a nominal application fee.
Earlier this year, the DoT requested information from Amazon about the Kuiper launch plan, such as establishing satellite gateways, data storage, and transfer for assessment purposes.
According to sources, the company provided all the necessary details, including its network diagram, to the DoT, which is currently evaluating them. Once the evaluation is complete, an inter-ministerial committee will review the company's application before giving its consent.
Amazon said that it would collaborate with the government and local partners to introduce "affordable broadband" services in the country.
Telcos eye satellite-based broadband market pie
According to the global consultancy, Deloitte, India's satellite broadband service market is expected to grow 36 per cent annually over the next five years and is estimated to reach $1.9 billion by 2030.
Due to its incomplete constellation, Amazon trails rivals Starlink, OneWeb, and Jio as far as service offerings are concerned.
Project Kuiper encompasses deployment of 3,232 satellites into low Earth orbit by 2029, half of which are scheduled to be commissioned by mid-2026. Amazon, however, has stepped up efforts at the global level to catch up with rivals such as Starlink to set up a satellite broadband network. The Seattle-headquartered company has allocated over $10 billion to launch Project Kuiper.
Amazon is likely to get GMPCS and IN-SPACe approvals ahead of Starlink, according to sources.
Starlink's approval is pending because the government has raised security-related concerns. A licence may be granted only when the company agrees to adhere to all the government's norms. Starlink will also require approvals from the home ministry, law enforcement agencies, and multiple security agencies.
Eutelsat OneWeb and Jio's Orbit Connect India have obtained GMPCS licence and In-SPACe approval. Both companies are awaiting spectrum allocation from the DoT, which is subject to TRAI's recommendations after the ongoing consultations are concluded.
Eutelsat OneWeb requested the DoT to provisionally allocate spectrum to them until the regulator finalises the pricing and other terms and conditions. The DoT has held back on the request because TRAI's consultation process is still a work in progress.
What does the new telecom law say?
The new telecom law, which was enacted last year, has cleared the way for allocating satellite broadband spectrum without auctioning it. The regulator had initiated consultations on assigning spectrum for satcom services in April 2023, but returned the reference to the DoT following the announcement of the new Telecommunications Act.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
