TRAI to Limit Satellite Permits to 5 Years, Defying Starlink: Report
The Indian government is set to recommend a 5-year satellite broadband spectrum allotment, contradicting Elon Musk’s Starlink, which had sought a 20-year permit. According to a recent report by Reuters, this move comes as a response to the partnerships formed between Indian telecom giants Jio and Bharti Airtel with SpaceX and Starlink respectively.
The recommendation, which is expected to focus on market growth and flexible pricing, is a significant blow to Starlink’s ambitious plans to expand its services in India. The 5-year limit is seen as a move to promote competition and ensure that the satellite broadband market remains dynamic and responsive to changing consumer demands.
The Telecom Regulatory Authority of India (TRAI) is expected to finalize its proposals next month, following a public consultation process. While the exact details of the recommendation are still unclear, industry insiders expect it to have far-reaching implications for the satellite broadband landscape in India.
Starlink, a subsidiary of SpaceX, had been seeking a 20-year permit to operate its satellite broadband services in India. The company had argued that a longer permit would allow it to invest heavily in its Indian operations and provide better services to customers. However, TRAI’s proposed recommendation appears to be at odds with Starlink’s demands.
The move is also seen as a response to the growing competition in the Indian satellite broadband market. Jio, a subsidiary of Reliance Industries, and Bharti Airtel, one of India’s largest telecom operators, have both formed partnerships with SpaceX and Starlink respectively to offer satellite broadband services to Indian consumers.
Jio, which has partnered with SpaceX to offer satellite broadband services under the brand name “Jio Global Connect”, had been seeking a longer permit to operate its services in India. However, the TRAI’s proposed recommendation appears to have dashed its hopes, at least for the time being.
Meanwhile, Bharti Airtel, which has partnered with Starlink to offer satellite broadband services under the brand name “Airtel Starlink”, had been seeking a longer permit to operate its services in India. The TRAI’s proposed recommendation is expected to impact its plans as well.
The TRAI’s decision to limit satellite permits to 5 years is seen as a move to promote competition in the Indian satellite broadband market. By limiting the duration of permits, the regulator hopes to encourage new entrants and prevent any single player from dominating the market.
In a statement, a TRAI spokesperson said, “The authority is committed to promoting competition and ensuring that the satellite broadband market remains dynamic and responsive to changing consumer demands. The proposed recommendation is designed to achieve this goal and ensure that Indian consumers have access to a wide range of satellite broadband services.”
While the TRAI’s proposed recommendation is expected to have significant implications for the satellite broadband market in India, it remains to be seen how it will impact the plans of Starlink and its partners, Jio and Bharti Airtel.
In a statement, a Starlink spokesperson said, “We are disappointed with the TRAI’s proposed recommendation and will continue to engage with the regulator to find a solution that works for all parties involved.”
The final decision on the satellite broadband spectrum allotment is expected to be made by the TRAI next month, following a public consultation process. Until then, the Indian satellite broadband market will remain in a state of uncertainty, with players waiting to see how the regulator’s proposed recommendation will impact their plans.
