Starlink-Amazon started new partnership in India: Signed deals with VSAT companies, will start satellite broadband service soon

Two big US satellite companies, Starlink and Amazon Kuiper, have signed commercial deals with VSAT (Very Small Aperture Terminal) companies for the first time in India. According to sources, these partnerships are a big step towards starting satellite broadband services in the enterprise (B2B) and government (B2G) sectors in India. These deals have been done when the official allocation of satellite spectrum in India is yet to be done.

What is the plan of these companies?

Both Starlink and Amazon Kuiper are preparing to expand their business in India through low-Earth orbit (LEO) satellite broadband service. These companies are not only targeting the business and government sectors, but are also planning to enter the retail consumer market. However, the pricing model for retail has not been finalized yet.

According to Moneycontrol sources, both Starlink and Amazon are working on partnerships in India. They have finalized deals with some VSAT companies, which are especially for the B2B and B2G segments. Their aim is to make full use of their satellite capacity in India.’

Who are India’s VSAT players?

Major VSAT companies in India include Hughes Communications, Nelco and Inmarsat. Both Starlink and Amazon Kuiper want to work in the business and retail segment. These companies will compete directly with Europe’s Eutelsat OneWeb, which will provide services through Indian partners. According to the report, ‘Starlink and Kuiper will adopt a hybrid model in India. They will also provide direct services and sell their services through partners.

Starlink has already announced partnerships with Reliance Jio and Airtel. Soon Starlink will also start direct consumer connections through its website.’ Amazon Kuiper will also follow a similar model and will not depend on any one distributor, given the diversity of India.

Benefits of VSAT services?

VSAT services are commonly used for bank branches, ATMs, remote gas stations, warehouses, retail chains, cellular backhaul, sea and in-flight connectivity and defense infrastructure. These sectors will benefit greatly from high-speed broadband available through LEO satellites.

According to the report, companies and government departments are currently working with low connectivity, but they want retail automation, remote monitoring and AI operations. The defense sector also needs high-bandwidth, which is possible only with LEO satellites.

Role of Hughes Communications

Shivaji Chatterjee, CEO, President and Managing Director of Hughes Communications India, told Moneycontrol that his company is in talks with all LEO satellite players in India. He said that we are a leading company and will be the main go-to-market partner for these companies in the B2B and B2G segments.

Starlink received the Global Mobile Personal Communications by Satellite (GMPCS) license last month. With which it has become the third company to provide commercial satcom service in India. However, it is yet to get approval from IN-SPACe.

Amazon awaits approval of GMPCS and IN-SPACe

A government official said that Starlink may get approval soon. Apart from this, the Department of Telecommunications (DoT) is preparing to give trial spectrum to Starlink so that it can complete the security test.

On the other hand, Amazon Kuiper is awaiting approval of both GMPCS and IN-SPACe. The company has completed the security and operational checks and its application will soon be reviewed in the Inter-Ministerial Committee meeting.

The Department of Telecommunications will soon decide the rules and prices for satellite spectrum allocation, which will be based on the recent recommendations of the Telecom Regulatory Authority of India (TRAI).

Competition will increase in the satellite broadband market in India

Recently, Union Communications Minister Jyotiraditya Scindia met top executives of SpaceX (Starlink’s parent company) and discussed strengthening India’s digital infrastructure with satellite technology.

The entry of Starlink and Amazon Kuiper in India will increase competition in the satellite broadband market. These companies will not only provide high-speed internet to the business and government sectors, but will also open up new possibilities for retail consumers.