Singapore’s largest service provider, Singtel, is seeking approval to offer satellite communication services in India, according to a recent report in the Economic Times.
According to the report, Singtel has sought foreign direct investment (FDI) approval from the Indian government to expand the services offered by its subsidiary Singapore Telecom India Pvt Ltd (STIPL) to include satellite communications. The company expects to target both public and private enterprises.
It plans to use 36 to 38 geostationary Earth orbit (GEO) satellites as well as its partnerships with other players to offer services in India. Singtel does not plan to deploy low-Earth orbit (LEO) satellites or partner with Starlink specifically for the Indian market, though it has a tie-up with Starlink to offer maritime services in Singapore.
India’s satellite communications market is projected to grow from $4.19 billion in 2022 to $14.8 billion by 2033, according to IN-SPACe’s Decadal Vision and Strategy for Indian Space Economy report. Satellite services can play a crucial role in providing connectivity in remote and rural areas, which are difficult and expensive to connect with a terrestrial network.
Satcom services are also important for enterprises and government entities looking for resilient connectivity, especially for critical infrastructure and locations with limited access to a terrestrial network. In addition, the country’s in-flight communications segment is opening up and will provide significant opportunities to satcom players.
Realizing the growing potential of the Indian market, several international players, including Starlink, Amazon LEO and Eutelsat OneWeb, are vying to enter the country’s satcom space. In addition, Reliance Jio, India’s largest service provider, is also planning to build a sovereign LEO satellite constellation.
Singtel also has an existing relationship with Bharti Airtel, India’s second-largest service provider, which gives it an established presence in the country.
However, the commercialization of satellite services in India remains subject to several regulatory hurdles. The satcom players are struggling to acquire final security clearances required to start offering commercial services.
Additionally, the government is yet to provide clarity about spectrum prices and timelines for allocation. Furthermore, traditional service providers have also been pushing for a level playing field, arguing that satellite players offering similar connectivity services should be subject to comparable regulatory obligations.
The competitive landscape can possibly become more complex as satellite operators expand beyond traditional broadband. Starlink recently re-applied for Gen 2 LEO satellite constellation which, if approved, will give it the capability to offer direct-to-device (D2D) services.
