India’s Internet Future with Starlink

Why in the News?

Recently, Bharti Airtel and Reliance Jio signed distribution agreements with SpaceX’s Starlink to introduce satellite internet in India, overcoming regulatory challenges and aiming to improve connectivity in remote and underserved regions.

Starlink’s Entry into India

  • Recently, Bharti Airtel and Reliance Jio signed distribution agreements with SpaceX’s Starlink service to bring satellite internet to India.
  • This marks a shift from the telecom industry’s previous reluctance to introduce Starlink without an auction for satellite spectrum.
  • The move is expected to enhance internet accessibility, particularly in remote and underserved regions.
  • However, Starlink faces several regulatory and logistical challenges before it can operate fully in India

What is Starlink?

  • Starlink is a satellite-based internet service developed by Elon Musk’s SpaceX.
  • It operates a constellation of over 7,000 low-earth orbit (LEO) satellites that provide broadband internet access worldwide.
  • The service is already available in around 40 countries, offering connectivity to regions with limited access to traditional internet infrastructure.

How Starlink Works

  • Starlink satellites orbit the Earth and provide internet coverage across vast areas.
  • Users require a ground terminal, which includes a router and an antenna, to connect to these satellites.
  • The service relies on ground stations that connect to the internet and relay data to the satellites, which then transmit signals to user terminals.

Features and Benefits of Starlink

Internet Speed and Performance

  • Starlink offers speeds of around 100 megabits per second (Mbps), comparable to many home broadband connections.
  • However, the latency—time taken for data to travel between a user and internet networks—is higher than wired broadband.

Coverage and Suitability

  • Starlink is most beneficial for rural and remote areas where conventional broadband and 5G networks are unavailable.
  • In urban areas with established fiber-optic networks, Starlink may not provide significant advantages in speed or cost.

Cost of Starlink in India

Hardware and Installation Costs

  • Users must purchase a Starlink terminal to access the service.
  • In the U.S., a residential kit costs $149, while a portable roaming kit is priced at $349.
  • After applying import duties, GST, and other surcharges, the equipment in India may cost between ₹17,000 and ₹40,000, excluding shipping charges.

Subscription Plans

  • Unlimited residential and roaming plans in the U.S. range from $120 to $165 per month.
  • In Bhutan, Starlink pricing ranges from 4,200 to 8,400 Ngultrum (equivalent to Indian Rupees), which may indicate potential pricing for India.
  • Premium mobile plans offering priority access could cost up to ₹21,000 per month.

Regulatory Challenges for Starlink in India

Licensing and Authorizations

  • Starlink requires a Global Mobile Personal Communications by Satellite (GMPCS) license under the Telecommunications Act, 2023.
  • While a similar authorization existed under the Telegraph Act, 1885, new rules under the updated Act have yet to be finalized.

Ownership Disclosure Requirements

  • Government of India has scrutinized Starlink’s ownership details for security reasons.
  • SpaceX initially resisted revealing corporate ownership data but has reportedly met the government’s demands.

Security Clearances

  • Starlink must secure clearance from the Ministry of Home Affairs (MHA) before launching operations.
  • Ground stations in India must be equipped with law enforcement tapping systems, a requirement for all internet service providers.

Spectrum Allocation Issues

  • Starlink requires satellite spectrum allocation to operate.
  • Unlike telecom spectrum, satellite spectrum is typically not auctioned since it can be shared among providers.
  • Indian telecom companies had previously opposed non-auction allocation but have now partnered with Starlink.
  • Legal opinions have suggested that the Supreme Court’s 2012 ruling on natural resource allocation (2G spectrum case) could impact spectrum policies.

Potential Impact of Starlink in India

Bridging the Digital Divide

  • Starlink can enhance connectivity in rural India, enabling education, healthcare, and digital banking in remote areas.
  • Villages with poor 4G and broadband penetration can benefit from instant satellite connectivity.

Improved Disaster Response

  • Starlink’s satellite internet can be crucial for disaster-stricken areas where traditional infrastructure is damaged.
  • It can provide emergency communication channels during floods, earthquakes, or cyclones.

Challenges for Affordability and Adoption

  • The high cost of hardware and subscriptions may limit Starlink’s adoption among Indian consumers.
  • Government intervention through subsidies or rural internet schemes may be required to make the service viable.

Future of Starlink in India

Regulatory Uncertainties

  • While the partnerships with Jio and Airtel signal progress, there have been no official government approvals yet.
  • SpaceX still awaits clarity on spectrum policies and security regulations.

Potential Government Policy Shifts

  • Elon Musk’s growing influence in S.-India trade relations may push the Indian government to expedite Starlink’s approval.
  • Pressure from S. trade policies could influence Starlink’s entry into India.

Competing Satellite Internet Services

  • Starlink is not the only company planning satellite-based internet in India.
  • Competitors like OneWeb (backed by Bharti Group), Amazon’s Project Kuiper, and Telesat are also seeking regulatory approvals.

Conclusion

Starlink’s entry into India could revolutionize internet access in remote areas, but challenges like regulatory approvals, spectrum allocation, and affordability persist. Its success depends on government policies, security clearances, and competitive pricing for wider adoption.

Source:

The Hindu

Mains Practice Question:

Analyze the impact of satellite-based broadband services on rural connectivity in India. How can the government ensure fair competition between telecom operators and satellite internet providers?