Starlink and Amazon Kuiper Push for Cheaper Satellite Spectrum in India to Bring Internet to Remote Areas

Elon Musk’s Starlink and Jeff Bezos’ Amazon Kuiper are pushing the Indian government to lower the cost of satellite spectrum so they can offer affordable internet services, especially in remote parts of the country. Kuiper warns that if airwaves become too expensive, these satellite providers may have to shift their focus from rural areas to more profitable urban centers, which goes against their original goal of connecting underserved regions. This change would put them in direct competition with Indian telecom giants like Reliance Jio and Bharti Airtel.

On Friday, Starlink emphasized that satellite spectrum is a shared resource and should not be auctioned, countering calls from Reliance Jio, owned by Mukesh Ambani, for a competitive auction system. Bharti Airtel, led by Sunil Mittal, also supports an auction model if satellite services are offered across the country, except in remote areas.

At the India Mobile Congress 2024, both Starlink and Amazon Kuiper urged Indian authorities to create a stable and predictable regulatory environment with minimal government interference. They argue that such an approach will enable them to provide broadband services from space to rural and remote regions, where setting up traditional communication infrastructure is costly and impractical.

In India, companies like Jio-SES and Bharti-backed OneWeb already have approvals to offer satellite communication (satcom) services. Starlink and Amazon Kuiper are still awaiting approval from Indian authorities, which will allow them to enter India’s growing satcom market. Experts see huge potential for growth in this sector, with India’s national space regulator, IN-SPACe, predicting that the country’s space economy could reach $44 billion by 2033, significantly increasing its global market share from 2% to 8%.

K Krishna, head of Asia-Pacific business at Amazon Kuiper, stressed the importance of a predictable regulatory framework for these multi-billion dollar investments. He highlighted that satellite services should not be treated as a “golden goose” for generating government revenue. Instead, he urged for lower regulatory and spectrum fees to incentivize satellite providers to reach unconnected and remote populations. “If spectrum prices are high, we’ll be forced to focus on urban markets, which are already well-served,” Krishna said. “But if the goal is to reach the last unconnected customer, then pricing should be supportive of that mission.”

These comments came after Indian communications minister Jyotiraditya Scindia clarified that spectrum for satellite services will be allocated administratively, but the cost will be determined by the Telecom Regulatory Authority of India (TRAI). Both Starlink and Kuiper hope that lower costs and fewer regulations will allow them to fulfill their goal of delivering high-speed internet to every corner of India, including its most remote and underserved regions.