Global Satcom players such as Starlink and Amazon’s Kuiper have urged the Telecom Regulatory Authority of India (Trai) and the government to keep the prices for satellite spectrum lower as in absence of it they will be compelled to offer their services in urban areas rather than in far-flung, remote regions where terrestrial connection does not reach.

These companies have emphasised on light touch regulations with a predictable policy regime. Higher spectrum prices even through administrative mechanisms will affect the profitability of these companies given a limited revenue opportunity in the rural areas, where telecom networks are not there.

“If the government prices the airwaves used for satellite communication services higher, the satellite communication companies will be compelled to go after the urban and connected subscribers,” K Krishna, business head, Asia Pacific at Amazon Kuiper, said at a session on the regulatory aspect of satellite spectrum at the India Mobile Congress.

According to Krishna, satellite services should not be looked at as a golden goose as they are trying to reach the last customer.

“So, if your goal is to reach that customer, we share that goal too. But if you burden us with a lot of fees, we may not be able to cost effectively serve them,” Krishna said.

David Goldman, head of satellite policy at SpaceX echoed Musk’s views and said the satellite spectrum is a shared resource, and cannot be auctioned.

During his address, Goldman said Starlink partners with local telecom operators to provide satcom services in any country.

“We use the spectrum that our partner is licensed for. Once we have a mobile partner, they will tell us which spectrum we can use,” he added.

In the US, Starlink has partnered with T Mobile to offer Satcom services.

Notably, in India both Starlink and Kuiper are yet to get the license to provide satellite broadband services. Only Jio and OneWeb have so far got the license to provide the services.

Starlink has 7,000 satellites in its constellation and operates in 100 countries. Amazon on the other hand is investing more than $10 billion globally to launch Kuiper. The company plans to put 3,232 satellites into low Earth orbit by 2029.

According to officials, Starlink’s approval in India is pending because the government has raised security-related concerns. The company will be granted license only when it agrees to adhere to the government’s norms, an official said.

According to the global consultancy, Deloitte, India’s satellite broadband service market is expected to grow 36% annually over the next five years and is estimated to reach $1.9 billion by 2030.
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Starlink, Amazon Kuiper urge govt to keep spectrum price low for Satcom services