Starlink, a satellite internet service provider owned by Elon Musk, is close to getting a licence to operate in India after meeting the regulatory requirements. The service is expected to help people in rural and remote areas get better internet access.
Starlink will likely get the green light from the Indian government this week after it discloses its ownership structure to the Department for Promotion of Industry and Internal Trade. The Department of Telecommunications (DoT) will then issue a letter of intent to Starlink.
The department is drafting a note that will be sent to telecom secretary Neeraj Mittal and minister of communications Ashwani Vaishnav for their approval. After they approve, the department's Satellite Communications Wing will grant the licence to Musk's company.
Starlink applied for a global mobile personal communication by satellite services (GMPCS) licence in 2022. It will be the third company – after Jio Satellite Communications and OneWeb – to obtain this licence.
However, the DoT approval will not enable it to start offering the satellite-based broadband service right away. Starlink will also need approval from the Indian National Space Promotion and Authorisation Centre to set up earth stations.
Even after getting all these approvals, Starlink, OneWeb, and Jio’s satellite arm will have to wait for DoT to allocate them spectrum to launch the service. Amazon’s satcom arm – Project Kuiper – is also seeking a GMPCS licence in India.
Past issues in India
In 2021, Starlink ran into trouble with the Indian government for taking pre-orders for its terminals at a nominal fee. The company wanted to conduct trials for its satcom services in India, but they were cancelled because the government asked Starlink to return the fees, which were collected without proper permissions to operate in India.
Following this, Sanjay Bhargava, the head of Starlink's India operations, quit.
Starlink also submitted applications to the DoT in 2022 to conduct trials with a large number of user terminals and gateway stations for purposes such as technology and capability demonstration, product stabilisation, and ecosystem development. However, the trials were not permitted.
Who will benefit from Starlink’s services in India?
Satellite communication, or satcom, can provide broadband speeds similar to 4G, which is up to 100 megabits per second (Mbps), but not 5G, which is up to 10 gigabits per second (Gbps).
Starlink users usually experience download speeds between 25 and 220 Mbps, with most users experiencing speeds of over 100 Mbps. Upload speeds are usually between 5 and 20 Mbps, according to its website. This technology is useful for consumers in remote areas that are not served by traditional internet infrastructure such as towers or optical fibre.
One of the main benefits of satellite communication is that installation and deployment are fast and easy compared to traditional terrestrial networks.
Starlink has suggested that satellite broadband connections are particularly beneficial for schools and healthcare facilities. The company may initially offer internet services directly to customers but may also explore the enterprise segment. OneWeb is expected to focus more on the B2B segment.
Starlink service cost in India
The cost of Starlink’s service in India is currently unknown. However, according to details shared by the company's former India head, the cost in the first year might be about Rs 1,58,000. The service cost will be Rs 1,15,000 from the second year including a 30 percent tax, since Starlink's equipment is a one-time purchase. The user equipment's base price is expected to be Rs 37,400, along with Rs 7,425 per month for services. Satellite communication in India is currently in the early stages, but it has huge potential, especially in rural and remote regions.
A report by EY-ISpA predicts that India's space economy will grow at a compound annual growth rate of 6 percent to reach $13 billion by 2025.
Starlink’s global operations
Most satellite internet services use single geostationary satellites that circle the earth at a distance of 35,786 km. This causes a high latency, which is the time it takes for data to travel between the user and the satellite. This high latency limits the ability to support high data rate activities such as streaming, video calls, and online gaming.
Starlink has more than 5,000 active satellites that provide internet with relatively low latency. The company claims to be the world's largest and the first satellite constellation to use low-earth orbit to offer broadband internet that supports online gaming, video calls, streaming, and other similar activities.
Starlink is a network of thousands of satellites that orbit the earth much closer, at about 550 km, and cover the whole world. Because Starlink satellites are in a low orbit, latency is much lower — around 25 ms vs 600+ ms, according to the company's website.
SpaceX is the only satellite operator that can launch its satellites as needed. With regular, low-cost launches, Starlink says its satellites are always updated with the latest technology.
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