Elon Musk's Starlink, Amazon Kuiper bat for 'predictable policy', low spectrum price for satcom services

Satcom

Global satellite communication players Elon Musk-owned Starlink and Amazon's Project Kuiper have urged the Telecom Regulatory Authority of India (TRAI) to ensure a predictable policy environment and to keep satellite spectrum prices low.

Without affordable pricing, they would be forced to focus on urban areas rather than remote regions, where terrestrial networks are unavailable, they said.

“If the government sets high prices for satellite communication spectrum, we will be compelled to target urban, connected customers,” said K Krishna, head of Asia Pacific, Amazon Kuiper, during a session on satellite spectrum regulation at the India Mobile Congress.

He said predictable policy is very important without which “these multi-billion dollar investments cannot be made”. “Do not look at satellite services as a golden goose. Be light on the regulatory fees and spectrum fees because we are trying to reach the last customer (in remote regions) in providing that universal access.” High fees would make it difficult to serve these areas cost-effectively.

David Goldman, SpaceX's head of satellite policy, echoed similar concerns, saying satellite spectrum is a shared resource and should not be auctioned.

Starlink works with local telecom operators to provide satellite services using the spectrum licenced to their partners, Goldman said. In the US, Starlink has partnered with T-Mobile to provide satellite communication services.

“Once we have a mobile partner, they will tell us which spectrum we can use. We then essentially plug into their network and become effectively a backhaul system for their network using their licensed spectrum,” Goldman said.

The SpaceX executive said terrestrial networks have extensive reach worldwide but there are areas where it is not cost-effective to install towers.

Starlink operates 7,000 satellites in over 100 countries, while Amazon is investing over $10 billion to deploy 3,232 Kuiper satellites by 2029. Deloitte predicts India's satellite broadband market will grow by 36 percent annually over the next five years, reaching $1.9 billion by 2030.

In India, Starlink and Kuiper are still awaiting a global mobile personal communication by satellite services (GMPCS) licence and regulatory approval to offer satellite broadband services. Government sources have indicated that their application are being reviewed by concerned departments.

So far, Bharti-backed Eutelsat OneWeb and Orbit Connect India, a joint venture between Jio Platforms and the Luxembourg-based satellite communication company, SES, have secured such licences.

Starlink's approval has been delayed due to security concerns raised by the government, which requires the company to comply with local regulations.

The GMPCS licence is the first step towards setting up a satellite internet by acquiring a trial spectrum at a nominal application fee.
The significant advances in satellite communication and its wide coverage have enabled its commercial use across various sectors, including broadcasting and telecommunications,” Trai chairman AK Lahoti, said. Many countries are supporting the deployment of satellite communications to deliver reliable and cost-effective broadband services, especially in remote and challenging terrains, he said.

Auction vs allocation

The remarks come at a time when a debate over the route for allotting spectrum — auction or allocation?

In a letter to telecom minister Jyotiraditya Scindia, Reliance Jio said the Telecom Regulatory Authority of India (TRAI) failed to address the important issue of maintaining a level playing field between terrestrial and satellite services.

Due to technological advancements, satellite communication constellations are now positioned to compete directly with terrestrial networks for both mobile and fixed wireless access, it said.

Unlike satellite services, terrestrial networks acquire spectrum through auctions. Jio called for a fair and transparent auction process for satellite services to ensure equitable competition.

Bharti Airtel, along with Starlink and Amazon's Kuiper, has called for allocation of spectrum.

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