Musk's Starlink nears India launch, Amazon's Kuiper faces further delays
What's the story
Elon Musk's Starlink is on the verge of launching its satellite services in India, according to Moneycontrol.
The company is set to receive a Global Mobile Personal Communication by Satellite (GMPCS) license from the Department of Telecommunications (DoT) within weeks.
This comes after Starlink met all security compliance requirements mentioned in its letter of intent (LoI).
The approval will pave the way for high-speed satellite broadband services across the country.
Approval process
Seeking approval from Indian space regulator
After getting the GMPCS license, SpaceX will seek approval from the Indian space regulator, In-SPACe, to launch Starlink's services.
The company's application is in its final stages, and an inter-ministerial standing committee (IMC) clearance will follow after the GMPCS license is secured.
Once the In-SPACe clearance is granted, Starlink will get a provisional spectrum allocation.
However, it will take at least nine months for the company to start commercial satellite communication services in India.
Compliance measures
Starlink has to set up gateways, NOC
The Indian government has thoroughly vetted SpaceX's Starlink, imposing strict security compliance measures.
These include lawful interception capabilities and a local command and control center.
A senior official told Moneycontrol that while the company has met the new license conditions, it still needs to fulfill several procedural steps.
These include setting up gateways, a Network Operations Center (NOC), and ensuring lawful interception capabilities before commercial satellite communication services can start in India.
Competitive landscape
Kuiper's application still under review
Unlike Starlink, its American rival Amazon Kuiper's application is still under review.
Despite meeting all security and operational conditions required to get the license, Kuiper is still far away from getting the LoI.
The company's application will be discussed at the next inter-ministerial standing committee meeting.
This delay puts Kuiper behind Starlink in terms of launching its services in India.
Criticism
Telcos are against satcom pricing recommendations
The DoT is currently evaluating pricing recommendations from the Telecom Regulatory Authority of India (TRAI), which have come under sharp criticism from Indian telecom operators.
In a letter dated May 29 addressed to DoT Secretary Neeraj Mittal, industry body COAI, representing Reliance Jio, Vi, and Bharti Airtel, voiced strong objections to TRAI's proposal to impose a 4% adjusted gross revenue (AGR) charge on satellite spectrum.
Scenario
COAI asks government to reconsider pricing structure
COAI called on the government to reconsider the pricing structure, arguing that traditional telecom operators face significantly higher upfront costs through spectrum auctions.
Their total payments to the government are around 21% more than what satellite providers would owe under TRAI's proposed model.
Labeling the proposal "non-transparent," COAI warned that the recommendations are unfair and could breach provisions of the Telecommunications Act, 2023.
The letter added that implementing them could distort market competition.