Editorial – OCT 2024

Allocation of spectrum for satellite through administrative route is on cards. Trai has floated the consultation paper. This has triggered a slugfest between the two billionaires – Mukesh Ambani of Reliance Jio and Elon Musk of Starlink.

Jio wants the spectrum allocation through auction route, while Starlink is favouring administrative allocation route. Of late, Sunil Bharti Mittal of OneWeb too changed his tune and started talking about allocation through auction.

Why are the two telcos arraigned against Starlink and what are they afraid of? Bharti Airtel has just 634 operational satellites, while Jio is nowhere in sight. On the other hand, Starlink as of September 2024, has 6,426 satellites in LEO, of which 6,371 are working. Starlink satellites are much closer to Earth, at about 550 km, and cover the entire globe. Because Starlink satellites are in a low orbit, latency is significantly lower – around 25 ms vs 600+ ms. It has plans to put as many as 42,000 satellites in its constellation by 2040.

Having said that, Starlink, owned by SpaceX, is the pioneer in this field. It makes its own satellite, has its own launch pad, and is an operator too, which no Indian telco is able to match.

On the other hand, Capex & Opex for the ground based mobile networks are definitely cheaper compared to satellite based network. The life span of terrestrial mobile network equipment is also more than double. The end user mobile handsets too are cheaper compared to satellite-cum-terrestrial mobile handsets. Therefore, the tariffs of satellite based networks are bound to be much higher for common users. For connecting to rural and unconnected masses, the government needs to subsidize it through USO Fund. Moreover, connecting to satellite would need clear line-of-sight.

Satellite communication is a much desired service for vast areas of India. It is beneficial for consumers in remote areas that cannot be reached by traditional internet infrastructure such as towers or optical fibre. Despite powerful 4G and 5G terrestrial wireless networks, 90 per cent of the Earth remains uncovered by wireless companies. These dead zones have serious consequences for remote communities and those who travel off the grid for work or leisure. The telecom industry has struggled to cover these areas with traditional cellular technology due to land-use restrictions, terrain limits and the globe’s sheer vastness.

Sunil Bharti Mittal has said Satellite communications is a “magic bullet” to cover dark unconnected areas, and he is ready to launch it the day the government gives them the permission. That is a nice sentiment so let the unconnected not wait for long due to bureaucratic hurdles.

There should not be any regulatory delays in its launch. The spectrum needs to be made available at a price which can facilitate an operator to provide affordable services. It is important for regulator to prepare in advance for IUC regime and PoIs for facilitating satellite rollouts including subsidy for rural connects.