Centre mulls proposal to allow satellite firms provide wireless service

According to experts, the move to provide mobility services authorisation to GMPCS licence holders will prepare the way for firms such as Elon Musk-owned Starlink to compete with telecom firms

The Centre is considering a proposal to allow satcom companies such as Jio Satellite Communications, the satcom division of Reliance Jio, and Bharti Group-backed OneWeb to provide wireless connectivity to consumers with compatible handsets, according to a report by The Economic Times (ET).

 

Officials stated that a panel involving the Ministries of Defence and Home Affairs, Departments of Telecommunications and Space, and the Cabinet Secretariat will have the final say on the matter, subject to security clearance. One official indicated that the meeting could occur within a few weeks.

 

Experts suggest that the move to grant mobility services authorisation to Global Mobile Personal Communication by Satellite Services (GMPCS) licence holders could pave the way for companies like Elon Musk-owned Starlink to compete with traditional telecom firms.

 

A GMPCS licence already allows for mobility services; however, the Department of Telecommunications (DoT) withheld this authorisation when it issued Letters of Intent (LoI) to OneWeb and Jio Satellite.

 

Previously, there was no adequate ecosystem for devices to support satellite services; thus, wireless voice and data services could not be effectively demonstrated. Both companies have informed the Centre that the device ecosystem is beginning to develop and is expected to become more widespread.

 

Industry experts noted that while satcom services may currently complement terrestrial services, they could compete directly. A satcom industry executive informed ET that as technology matures and interoperability becomes standardised, consumers will be able to access connectivity via satellites.

 

Telecom Regulatory Authority of India (Trai) Chairman PD Vaghela remarked that satcom services currently complement telecom services and can facilitate connectivity in remote areas, but they could become competitors in the future.

 

Although Trai has recommended a 50 per cent reduction in entry fees for various licences, including a unified licence for access services, it has not proposed any fee reduction for GMPCS and VSAT authorisations.

 

Both Jio and OneWeb have received GMPCS licences but are awaiting clarity on spectrum allocation.

 

Jio Infocomm and Vodafone Idea have advocated for an auction of satellite spectrum, while the Bharti Group has been pushing for an administrative route, bypassing auctions. Trai is expected to issue recommendations on satellite spectrum allocation shortly.