Elon Musk's Starlink service, one of the world's leading satellite internet companies, is very close to launching in India. Union Communications Minister Jyotiraditya Scindia recently told in an interview that the Department of Telecommunications (DoT) has issued a Letter of Intent (LoI) to the company.
Starlink has received licence from the telecom dept
Starlink has received a licence from the telecom department for providing satellite internet services in India, a key milestone that will take it closer towards launching commercial operations in the country.
Starlink is the third company after Eutelsat OneWeb and Jio Satellite Communications to get a licence from the Department of Telecommunications to provide satellite internet services in the country.
A fourth applicant, Amazon's Kuiper is still waiting for approvals.
Approval from IN-SPACe is mandatory
Now Starlink has to get final approval from IN-SPACe (Indian National Space Promotion and Authorization Center). The Communications Minister clarified that before starting satellite internet service in India, all companies have to get approval from IN-SPACe. He said, "At present OneWeb and Reliance are two such companies that have got license for satellite-based internet services. Starlink is also in the final stage now and I hope it will get the license soon."
TRAI will decide regulatory framework for spectrum distribution
Reliance and OneWeb have already been allocated limited spectrum for trial. Starlink will also have to undergo similar tests after getting approval. After this, TRAI will decide the regulatory framework for spectrum distribution for satellite internet
Kuiper is also planning to launch its satellite internet services
Like Starlink, Amazon-backed Project Kuiper is also planning to launch its satellite internet services in India. The company is working on a plan to set up two Points of Presence (PoPs) and 10 satellite gateways in Mumbai and Chennai. Kuiper has also written a letter to DoT to issue LoI soon.
What TRAI said about spectrum fee
TRAI has recommended that satellite internet provider companies pay 4% of their Adjusted Gross Revenue (AGR) as spectrum fee. Additionally, urban customers will be charged Rs 500 per user per year, while rural customers are exempted from it. A license fee of 8% will also be applicable on satellite operators.
TRAI has recommended subsidies as the cost of high-end terminal devices in rural areas ranges from Rs 20,000 to Rs 50,000. However, COAI (Cellular Operators Association of India) has written to the DoT objecting to the disparity in spectrum charges between satellite and terrestrial networks.