Jio Platforms overcomes challenge to launch satellite internet in India

Reliance Jio, SES Venture Secures Indian Approval for Satellite Internet

A joint venture between Reliance Industries' Jio Platforms and Luxembourg-based SES has received approval from India's space regulator to operate satellites aimed at providing high-speed internet in the country, according to a government executive. This development marks a significant step in the race to offer satellite-based internet services in India, a market also being eyed by major companies like Amazon and Elon Musk's Starlink.

The approvals for the venture, named Orbit Connect India, were granted in April and June by the Indian National Space Promotion and Authorisation Centre (IN-SPACe). These authorizations enable the operation of satellites over India, although further clearances are required from the Department of Telecommunications for full operational commencement. As of now, Reliance has yet to provide additional details on this progress.

IN-SPACe Chairman Pawan Goenka disclosed that Inmarsat has also secured permissions to operate satellites over the nation. Moreover, Starlink and Amazon's Kuiper have submitted their applications, while Eutelsat’s Bharti Enterprises-backed OneWeb obtained all necessary clearances late last year.

Expanding Market and Competitive Landscape

India’s satellite broadband market is poised for substantial growth, expected to expand by 36% annually over the next five years and hit an estimated $1.9 billion by 2030, as projected by Deloitte. The global race to bridge the digital divide in remote areas via space-based internet solutions is intensifying, with major investments being announced. For instance, Amazon plans a $10 billion investment in its Kuiper project, which launched in 2019, the same year SpaceX commenced deploying its Starlink satellites. Recently, Sri Lanka also granted preliminary approval for Starlink services.

According to Goenka, increased competition among companies in India's satellite internet sector will benefit consumers by driving innovation and potentially lowering costs. He highlighted how similar trends have been observed in other industries, such as automotive, where global manufacturers have had to innovate significantly to meet the price-performance expectations of Indian consumers.

Private Sector Involvement and Government Support

IN-SPACe is also set to authorize private companies to operate ground stations, facilitating satellite operators in downloading data as they traverse over India. The Indian government, under the leadership of Prime Minister Modi, who recently secured a third term, is keen on advancing the country's space industry. This year saw regulations favoring foreign direct investment, allowing international companies to invest up to 100% in satellite component production without prior approval.

This policy shift has markedly increased investor interest, with investment figures experiencing a significant uptick, as Goenka noted. "Last year, investments in private companies were between $2 million and $7 million. This year, discussions are around $20 million to $30 million," he stated, indicating a successful proof of concept for the industry.

Conclusion

The approval for Orbit Connect India ushers in a new era of satellite internet services in India, promising to enhance digital connectivity in rural and underserved areas. With substantial market growth projections and increasing foreign investments, the satellite communication landscape in India is on the cusp of a major transformation. The emergence of multiple key players is likely to accelerate technological advancements and drive down costs, ultimately benefiting the end consumers.