Starlink Applies To IN-SPACe For Establishing Earth Stations

Elon Musk’s Starlink has submitted an application to the Indian National Space Promotion & Authorisation Centre (IN-SPACe) in order to obtain the necessary approvals for establishing earth stations. This move represents another significant step for Starlink's entry into the Indian market, where it will face competition from OneWeb, backed by the Bharti Group, as well as Amazon and Reliance Jio's satellite communication arm. 

Previously, the US company had applied to the Department of Telecommunications (DoT) for a license to provide global mobile personal communication by satellite services (GMPCS). According to officials familiar with the matter, the Ministry of Home Affairs is currently conducting a security check for Starlink's GMPCS license, which is expected to be granted within a couple of months. 

A government official informed a leading media house that Starlink has also applied to IN-SPACe while the GMPCS application is currently in process. 

Foreign entities are now permitted to establish infrastructure and offer satellite services in India, subject to approval from IN-SPACe. Under India's new Space Policy 2023, IN-SPACe, an autonomous central regulatory body, has been empowered to act as the sole agency for authorising various space activities conducted by both government and private satellite communication players. 

Once Starlink, a subsidiary of SpaceX, receives the necessary approvals, it will then need to await spectrum allocation from the DoT. Oneweb, its main competitor, has already obtained all the required approvals but is still awaiting spectrum allocation. Reliance Jio's satellite division has also received the GMPCS license from the DoT. 

Starlink has faced setbacks in India previously. Last year, the company was required to refund pre-booking payments to Indian consumers after the DoT instructed them to obtain regulatory approvals before accepting any pre-orders for their services. Consequently, the company withdrew its communication regarding pre-orders and has since been focused on obtaining the necessary regulatory approvals. 

Competition in India's emerging broadband-from-space services sector has intensified, as companies strive to launch services quickly to gain a first-mover advantage. The satellite communications market in India is still in its early stages, but its potential is substantial, particularly in rural and remote areas. According to an EY-ISpA report, India's space economy is projected to reach USD 13 billion by 2025, with a compound annual growth rate (CAGR) of 6 per cent. 

Amazon's Project Kuiper has also expressed interest in providing high-speed broadband services using satellites in the world's second-largest telecom market. 

However, Amazon has yet to apply for regulatory approvals and is currently participating in the consultation process led by the Telecom Regulatory Authority of India (Trai), which aims to finalise the allocation methodology for satellite spectrum. Trai is expected to submit its proposals to the DoT by August. 

Satellite communication companies such as Starlink, OneWeb, and Amazon are advocating for spectrum allocation without auctions. On the other hand, telcos like Jio and Vodafone Idea are pushing for spectrum to be allocated to the highest bidder. Bharti Airtel, another telecom player, opposes auctions for different reasons than the satcom companies. 

The satcom industry has emphasised that auctioning spectrum would make broadband-from-space services unaffordable and limit access to high-speed connectivity for consumers in rural and remote areas. Industry experts have also cautioned that auctioning satellite spectrum could hinder the growth potential of the space sector and impact potential foreign direct investment (FDI) in satellite broadband. 

Trai's stance is that if the auction model does not harm the satellite industry, it may recommend spectrum allocation through auctions. However, if it determines that auctions would adversely affect the satellite and broadcasting industries, it will not propose an auction.