Starlink, Jio & OneWeb Target US$1.9bn Indian Satcom Market

Elon Musk’s Starlink has achieved a significant milestone by securing a crucial licence from India’s Department of Telecommunications (DoT). It will allow Starlink to launch commercial satellite communication services in one of the world’s fastest-growing digital markets.

The development marks a significant turning point for the satellite broadband sector and aims to reshape the competitive landscape for enterprise and telecom operators across India.

Regulatory approval: clearing a major hurdle

Starlink’s approval comes after a prolonged wait since 2022, during which it navigated a complex regulatory environment and addressed concerns related to national security and data sovereignty.

The DoT’s decision places Starlink alongside Eutelsat OneWeb and Reliance Jio’s Jio Satellite Communications as the only companies licensed to provide satellite internet services in India.

India’s evolving satcom regulatory landscape

India’s satcom sector is undergoing rapid transformation. The DoT recently introduced stringent security guidelines for all satellite communication providers, reflecting the government’s commitment to safeguarding national interests as foreign players increase their presence.

The new rules require operators to comply with over 20 security conditions, including data localisation, real-time monitoring, user terminal registration and geo-fencing.

Providers must integrate with India’s indigenous NavIC positioning system by 2029.

Official guidelines issued by India’s DoT note: “Indian user traffic shall not be routed through any Gateway/PoP located abroad or any space system, which is not part of the satellite/constellation used for providing service… Indian user traffic shall not be mirrored to any system/server located abroad.”

The measures demonstrate the government’s intent to ensure that satellite networks do not become a national vulnerability.

Spectrum allocation and financial implications

The Telecom Regulatory Authority of India (TRAI) has recommended that satellite spectrum be administratively allocated for five years, with an option to extend by two more years.

Spectrum usage charges are set at 4% of adjusted gross revenue (AGR), with a minimum annual fee and additional charges for urban subscribers. At the same time, rural areas are exempt from subscriber fees.

The approach aims to encourage rural connectivity but has drawn criticism from domestic telecom operators, who argue that the charges are “unjustifiably low and will hurt their businesses”.

Strategic partnerships and market impact

In a move that has captured industry attention, Starlink has partnered with leading Indian telecom firms Bharti Airtel and Reliance Jio. The collaborations expect to accelerate the rollout of high-speed satellite broadband, particularly in rural and underserved regions. 

Despite these alliances, competition remains fierce. Jio and Bharti Airtel will continue to vie with Starlink in the broadband market, even as they stock Starlink equipment in their retail stores.

Market potential and outlook

India’s satellite broadband market is projected to reach US$1.9bn by 2030, attracting global players such as Amazon’s Kuiper, which is still awaiting a licence.

The government’s “Make in India” initiative further requires satcom providers to source at least 20% of ground infrastructure equipment domestically within five years, reinforcing the strategic importance of local manufacturing.

For telecommunications enterprises, Starlink’s entry signals both opportunity and challenge. As India’s regulatory environment matures and the demand for ubiquitous connectivity grows, the satcom sector is positioned for a robust expansion. However, compliance with evolving security and operational standards will be essential for sustained success.

Starlink’s licence approval marks a watershed moment for India’s telecommunications industry, setting the stage for a new era of connectivity and competition in the satellite broadband space.

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