Starlink and Amazon Kuiper sign first commercial deals in India
What's the story
Elon Musk-led Starlink and Jeff Bezos-backed Amazon Kuiper have signed their first commercial agreements with Indian Very Small Aperture Terminal (VSAT) players. The move comes as a major step toward launching enterprise and government satellite broadband services in the country. The partnerships were formed even before the official allocation of satellite spectrum, Moneycontrol reported citing sources familiar with the matter.
Market strategy
Companies are forming partnerships in India
The low-Earth orbit (LEO) satellite broadband companies are looking to monetize their services in the B2B (enterprise) and B2G (government) segments. They are also gearing up to tap into the retail consumer market, where pricing models are still being finalized. "Both Starlink and Amazon have been working to form partnerships in India," a source told Moneycontrol.
Competitive strategy
Competing with Eutelsat OneWeb
Starlink and Amazon Kuiper plan to operate in both enterprise and retail segments, directly competing with Eutelsat OneWeb. Starlink and Kuiper are going for a hybrid go-to-market model in India, Moneycontrol reported, adding that they would offer service directly while also forming partnerships to sell through partners.
Connectivity enhancement
What VSAT service providers do
VSAT service providers enable connectivity for bank branches, ATMs, remote gas stations, warehouses, retail chains, cellular backhaul, maritime and in-flight connectivity. The services could benefit from higher-bandwidth LEO-based upgrades. "Companies and government departments run with less connectivity but they want retail automation, remote monitoring, and AI operations," the source said.
Approval status
Starlink has received GMPCS license
Starlink has joined Eutelsat OneWeb and Jio Satellite in terms of regulatory progress. Last month, it received a Global Mobile Personal Communications by Satellite (GMPCS) license, becoming the third company to get permission for commercial satcom services in India. However, its IN-SPACe authorization is still pending. The Indian space regulator has issued a provisional agreement to Starlink, which is likely to be signed soon.
Clearance update
Amazon Kuiper is still waiting for clearances
Amazon Kuiper is waiting for clearances from both GMPCS and IN-SPACe. The company has completed all security and operational checks, with its application likely to be reviewed in the next inter-ministerial standing committee meeting. The Department of Telecommunications (DoT) is also expected to soon formulate rules and pricing for administrative satellite spectrum allocation, based on recent recommendations from the Telecom Regulatory Authority of India (TRAI).