India’s Telecom Minister Jyotiraditya Scindia has signaled strong support for satellite internet, particularly for connecting rural areas, a positive development for companies like Elon Musk’s Starlink, which is seeking to enter the world’s most populous nation, Bloomberg reports.
“There are many remote corners of the country where you cannot take fiber or mobile connectivity. How do you do 100% saturation if you don’t have satellite internet?” Scindia said in an interview Tuesday, emphasizing the complementary role of satellite connectivity.
He added that it would be “the only way that you can activate things” in the event of natural disasters disrupting terrestrial infrastructure.
Scindia’s remarks underscore the Narendra Modi-led government’s backing for satellite internet services, providing a boost to global firms like Starlink, Amazon’s Project Kuiper, and OneWeb Ltd vying for entry into the Indian market.
While Starlink is still awaiting a regulatory license and clarity on local spectrum pricing, recent developments suggest progress. Last week, the company announced alliances with two major Indian wireless operators, Reliance Jio Infocomm Ltd. and Bharti Airtel Ltd., potentially easing previous opposition to Starlink receiving affordable access to airwaves.
“India’s market is open for anyone and everyone who wants to come and participate in this large market and provide a service,” Scindia stated. “Ultimately it’s the consumer that has to decide who they will go with.”
Scindia declined to comment on the timeline for Starlink’s license approval or the pricing of airwaves for satellite internet firms. India’s telecom regulator is currently formulating rules on spectrum pricing, which will significantly impact the cost of satellite broadband for Indian users.
India is the world’s second-largest internet market, known for its highly competitive pricing environment, with phone data charges among the lowest globally. Any new entrant will face the challenge of attracting price-sensitive consumers.
Scindia indicated that the firms themselves will determine the pricing of their satellite internet services.
Global companies, including Starlink, will also be required to meet India’s internal and external security conditions before obtaining a license. OneWeb, along with Reliance Jio’s JioSpaceFiber, has already secured local licenses to begin operations.
“Eventually it’ll be an economies of scale argument that’ll come through,” Scindia said. “At this point of time, let the market be penetrated first.”
