Amazon’s LEO Satellite Play: Project Kuiper Eyes India, Awaits DoT Approval
While competitors like Starlink and OneWeb have a head start, Amazon’s deep pockets and strategic approach could make it a formidable contender.
Amazon, through its Project Kuiper, is gearing up to enter India’s satellite communications market, joining a field already populated by established players like Elon Musk's Starlink, Eutelsat OneWeb, and Orbit Connect India. Amazon’s satellite ambitions are currently in the hands of the Indian regulators, with the company awaiting a satcom licence from the Department of Telecommunications (DoT) and clearance from the Indian National Promotion and Authorization Centre (In-SPACe).
Starlink, backed by Elon Musk’s SpaceX, and OneWeb, supported by Bharti, are currently leading the global race in satellite communications. Starlink has already deployed 6,426 low-Earth orbit (LEO) satellites, while OneWeb’s satellite count stands at 634. Both companies are significantly ahead of Amazon’s Project Kuiper, which aims to launch 3,232 LEO satellites by 2029, with half expected to be operational by 2026.
Despite these numbers, Amazon is poised to catch up by investing heavily in Project Kuiper, allocating a budget of USD 10 billion. This underscores the company’s commitment to closing the gap with its rivals, although it currently lags behind in satellite deployment.
Amazon’s path to launching Project Kuiper in India hinges on securing a Global Mobile Personal Communication by Satellite Services (GMPCS) licence from the DoT and In-SPACe. Amazon has already submitted its plans for satellite gateways, network architecture, and other details, and these are reportedly under review by Indian authorities. Once this evaluation is completed, an inter-ministerial committee will take the final call on granting approval.
Interestingly, Amazon could secure its licence before Starlink due to the latter’s ongoing regulatory challenges in India. In 2020, Starlink illegally started offering Indian customers the option to purchase its base station despite lacking the necessary permissions. This prompted the DoT to intervene and halt the sale, casting doubts on Starlink’s regulatory compliance. Moreover, Elon Musk’s fluctuating stance on launching Tesla in India may have further strained his relationship with Indian authorities, creating additional roadblocks for Starlink’s entry.
Initially, Starlink was expected to become operational in India once it secured the necessary licences. Elon Musk was even slated to visit India in April 2024 to announce Starlink’s official entry into the Indian market, along with Tesla’s. Musk had reportedly committed to a $500 million investment in the country for Tesla and planned to set up an electric vehicle (EV) manufacturing facility. However, in a surprising turn of events, Musk backed out just days before his scheduled arrival, choosing instead to travel to China. This sudden change has reportedly caused further delays in Starlink’s plans for India. Starlink has to also agree to the government's norms for the license which it hasn't to-date.
As Amazon awaits regulatory approvals, it has already begun laying the groundwork for its Indian operations. Several LinkedIn job postings have appeared for key roles, such as business development leads, go-to-market strategists, and project managers. These roles will report to Rahul Savoor, who heads Amazon’s South Asia strategy for Kuiper. Amazon has also recruited a former regulatory head from OneWeb, signalling its intention to build a strong regulatory and business team in India.
Once the DoT and In-SPACe give the green light, Amazon is expected to ramp up its local headcount and aggressively pursue market share in India’s satellite broadband sector.
While both Eutelsat OneWeb and Orbit Connect India already hold GMPCS and In-SPACe licences, they are still waiting for spectrum allocation from the DoT. Amazon, too, will need to navigate this complex process. The Telecom Regulatory Authority of India (TRAI) is currently consulting on the pricing and methodology for satellite spectrum allocation, a crucial step before any of these players can begin offering services.
Eutelsat OneWeb has reportedly requested provisional spectrum allocation pending TRAI’s final recommendations. However, the DoT has held off on this request until the consultation process concludes. The new telecom law, which allows for spectrum allocation without an auction, has created new pathways for satellite operators to acquire spectrum more swiftly, but the regulatory landscape remains fluid.
India’s satellite broadband market is projected to grow significantly in the coming years. Deloitte estimates an annual growth rate of 36 per cent, with the market potentially reaching $1.9 billion by 2030. For Amazon, this presents a golden opportunity. Despite trailing Starlink and OneWeb in satellite deployment, Project Kuiper aims to tap into this growing market with a focus on providing affordable broadband services across India, particularly in underserved areas.
Amazon’s significant financial resources and strategic partnerships with local players could enable it to compete effectively. However, the company will need to move quickly to close the gap with its rivals, especially as Starlink and OneWeb have already launched operational satellites.
Amazon’s Project Kuiper is expected to launch its global operations by the fourth quarter of 2024. The company is well-positioned to play a significant role in India’s satellite communications sector, especially if it can secure the necessary approvals soon. While it still lags behind Starlink, Amazon’s aggressive investment and local hiring plans signal its intention to be a major player in India’s rapidly expanding satellite broadband market.
For Amazon, Project Kuiper represents a long-term, high-stakes investment in India’s satellite broadband space. While competitors like Starlink and OneWeb have a head start, Amazon’s deep pockets and strategic approach could make it a formidable contender. The satellite race in India is heating up, and as the DoT and In-SPACe near final approvals, Amazon is positioning itself to make a significant impact.
With Elon Musk’s recent backing out of Starlink and Tesla’s India launch, Amazon has a unique window of opportunity to capitalise on its rivals’ missteps and establish itself as a key player in India’s satellite communications future.
