3 min read Last Updated : Mar 16 2025 | 11:14 PM IST
India’s two top telecom companies, Reliance Jio and Bharti Airtel, have, in a surprise development, announced tieups with American space technology company SpaceX, in which cofounder Elon Musk holds a majority stake. The partnerships would enable Starlink, a fully owned subsidiary of SpaceX, to bring its satellite broadband service to India. Starlink, which already operates in 120 markets worldwide, is expected to come with international expertise in providing high-speed and low-latency internet connectivity. OneWeb, majority owned by the Bharti group, and Reliance Jio are geared up to launch their respective satellite broadband services in India.
While the industry is in a state of readiness, satellite telecom service cannot take off in India unless a policy is framed. Since satellite telecom offers promise to significantly transform the landscape of internet connectivity by reaching the remote and rural areas, which have remained broadband-deprived thus far, the government and the regulator — the Telecom Regulatory Authority of India (Trai) — must quickly finalise the rules and guidelines for the service. On policy, the government has decided not to go through the auction route to allocate spectrum to the service providers. Airwaves for satellite broadband services, in contrast to terrestrial services, will go through administered allocation — a contentious issue till recently. The government move is in line with the global practice of administered allocation of spectrum in the case of satellite communication. But, there are many critical issues that need to be ironed out. For instance, Trai is yet to recommend a spectrum-pricing formula. Further, when the spectrum will be available to the players is not known. Also, there’s lack of clarity on the period of the licence. Trai is reportedly looking at a five-year licence for Starlink, while some other players have got a 20-year licence already for Global Mobile Personal Communications by Satellite, or GMPCS. Since the licensing regime for GMPCS has already been set, a different rulebook for Starlink would be problematic. The government must remove any ambiguity on the licensing period.
Government approval to Starlink, especially security clearance, is another loose end that needs attention. Starlink’s application to operate in India has been stuck for long. Security-related conditions for Starlink are also being worked out. Among the conditions are mandatory local control centres and storage of data in India. There is also a proposal to make Starlink go into rural and remote areas initially, while preventing it from accessing the urban subscriber base. Some of the conditions that have no bearing on national security may delay policy making and therefore the launch of the service. India will witness a second coming of satellite communication once the government firms up a comprehensive policy and companies roll out their service. In 2012, India had banned the use of Thuraya and Iridium satellite phones and devices. The ban was triggered by the Mumbai terror attacks in 2008, when satellite phones were reportedly used by the terrorists. However, these devices were subsequently allowed for maritime communication in safety, search and rescue missions.
The new satellite era is expected to hold tremendous promise for the Indian public in several spheres, including education and health care, while unleashing opportunities for businesses and organisations. The government should step in proactively to make satellite telecommunication a reality and bridge the digital divide in the country.