Bharti Group-backed OneWeb will have a first-mover advantage in the market, being more prepared to launch commercial satellite-broadband communication (satcom) services in the country, while its global rivals may need nine months to two years to compete, a top official of Hughes Communications India Private Ltd (HCIPL) said.
The executive expects OneWeb to get an interim allocation of spectrum to launch commercial satcom service in the country.
“They [OneWeb] have got the act together and got approvals from DoT (Department of Telecom) and IN-SPACe (Indian National Space Promotion and Authorisation Centre). Their gateways are undergoing trials , and they are ready for commercialisation as soon as the spectrum is allocated,” Shivaji Chatterjee, HCIPL President and Managing Director, told Moneycontrol.
HCIPL is a joint venture between Hughes Communications India and Bharti Airtel to provide satellite broadband services in India. HCIPL is also OneWeb’s distribution partner to provide Low Earth Orbit (LEO) connectivity services across India.
Hughes, through its parent company EchoStar, is a shareholder in OneWeb.
Why are many players behind?
“The other guys are definitely behind. They don't have the full constellation complete or telecom and IN-SPACe approvals in place, along with gateway setups. It will probably take anything from nine months to two years for anyone else to start service in the country after entry,” he added.
Hughes is also developing gateway electronics - including those in Gujarat and Tamil Nadu - and the core module that will power every user terminal for the system.
OneWeb and Jio Satellite Communications have already obtained GMPCS (global mobile personal communications by satellite) licences. OneWeb is the only company to have secured IN-SPACe’s approval and has also received a trial satellite spectrum in both the 'Ka' and 'Ku' bands for 90 days.
Any entity planning to offer satcom services in India must obtain approvals from IN-SPACe, a GMPCS licence and spectrum from DoT.
OneWeb, Starlink, Jio Satellite Communications, and Amazon are all competing for a share of the growing Indian market.
Chatterjee said that Oneweb’s LEO satellite constellation, along with ISRO arm NewSpace India Limited’s GSAT-20 and non-geostationary (NGSO) satellites, will bring more capacity to the country’s satellite broadband services space.
The GSAT-20 is a high-throughput Ka-band Satellite, fully owned, operated and funded by NewSpace India Limited (NSIL), the commercial arm of ISRO .
Jio Space Technology Ltd, a joint venture between Jio Platforms and Luxembourg-based SES, plans to offer India’s first NGSO (non-geostationary orbit)-based satcom service.
“This capacity will be better and be made available at a lower cost. It will be similar to switching from 2.5 G to 4G or 5G capacity. It will be a generational leap,” he said.
“OneWeb and GSAT-20 will be launched this year, Starlink could probably launch service next year and Amazon Kuiper in 2026,” he added.
India: A tough market for Starlink
The executive, however, said India would not be an easy market for Elon Musk’s Starlink, which has so far tapped lightly regulated markets, unlike India which mandates setting up gateways, legal interceptions and all licences from the telecom department and IN-SPACe.
Additionally, India already has a wide availability of high-speed 4G and 5G voice and data services which could make it a tougher market for Starlink. “Starlink has enough markets globally which are lightly regulated where they will do well. But replicating that is unlikely in India and it will not be an easy market to crack,” he said.
Starlink has applied for a permit to provide services in India but it is yet to get approval. The telecom department (DoT) is currently conducting due diligence on the Starlink satellite internet unit.
Starlink would also require approvals from the home ministry, law enforcement agencies, and the country's security agencies due to security concerns.
Satcom market, in general, will be tough for all players due to the massive investments done by Indian telcos in deploying 4G and 5G services.
The executive said that there are clear use cases where satcom will be critical but it may not change the “dynamics” of the Indian telecom industry.
“While satcom will be another option, it is not going to be cheaper or have enough spectrum to pose a challenging proposition to private telcos’s terrestrial service. It, however, will bring new users to mobility services and will improve economics in rural communities,” he said.
The government has decided to allocate spectrum to satellite communication companies without auction through an administrative process for point-to-point connection.
Spectrum allocation for satcom is expected to take another four to six months. The telecom department plans to send the terms of reference to the sector regulator for recommendations after elections.
The department may ask the Telecom Regulatory Authority of India (Trai) to consult on the methodology of allocation of the airwaves and the framework of the licensee so that they are future-ready. It may look at altering existing licences, depending on the recommendations given by the regulator in line.
“We expect consensus based on consultations and interactions, and Trai to come up with an incremental exercise and a set of questions which will be specific to how spectrum allocation should be charged. Ninety percent of groundwork has been done by the regulator,” Chatterjee said.
The company expects the regulator to complete the process in the next 3-4 months. “There may be an interim allocation which will go to OneWeb,” he said, adding that it will ensure that the launch of services is not delayed.
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