India's satellite sector heats up with Jio's entry

Reliance Jio's newly formed satellite unit, Jio Satellite Communications, has applied for a global mobile personal communications by satellite (GMPCS) service license, according to media reports.

This marks the formal entry of India's largest service provider, Jio, in the satellite sector.

Jio's business model is as yet unclear. Jio may lease or resell satellite bandwidth capacity to offer cellular backhaul connectivity services to service providers in rural or remote areas, where mobile broadband connectivity is limited.

Figure 1: The vast majority of unconnected people in India live in rural and remote areas - where satellite-based broadband can help bridge the digital divide.
(Source: SpaceX via SES media kit)

The operator may also provide satellite-based broadband services to enterprise.

After Bharti Airtel, Jio becomes the second Indian telco to enter the satcom space.

Airtel's OneWeb plans to launch services later in 2022. In addition, the company has partnered with Hughes Communications to distribute OneWeb satellite services.

OneWeb plans to build a constellation of more than 600 low earth orbit (LEO) satellites, and already has around 394 in orbit. And it has also entered into an arrangement with ISRO's New Space India Limited to launch its satellites in India from 2022.

Going head to head

India's satellite space is likely to witness intense competition with several global brands, like Amazon's Project Kuiper, Elon Musk's Starlink, and Telesat also entering this segment.

Starlink had started pre-booking, and was likely to launch in 2022. However, those plans are in jeopardy, with the Department of Telecommunications (DoT) asking the company to stop sign ups, as it doesn't have the required licenses.

On the other hand, Tata Group company Nelco has formed an alliance with Canada's Telesat to sell satellite-based broadband services in the country.

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The vast majority of unconnected people in India live in rural and remote areas, where satellite-based broadband can help bridge the digital divide.

Satellites can also be used to provide cellular backhaul-based coverage in difficult-to-reach areas.

Global market research firm EY says while India accounts for just 2.6% of the global space economy in 2020, it is likely to reach $12.8 billion by 2025.

While clearly India's satellite communications market is heating up, with various companies entering the fray, the government needs to come up with policies to support the sector.

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— Gagandeep Kaur, contributing editor, special to Light Reading