OneWeb India has received approval from the Indian National Space Promotion and Authorization Center (IN-SPACe) to operate satellite broadband services in the country, marking a significant step towards enhancing internet connectivity, particularly in remote areas. This development comes as part of a broader effort to bridge the digital divide and stimulate economic growth through improved access to online education and healthcare services.
The authorization, pending Department of Telecommunications (DoT) spectrum allocation, positions OneWeb India to launch its services for a five-year term once spectrum rights are granted. The company, backed by Bharti Group's Sunil Bharti Mittal, has stated its readiness to commence operations and aims to provide high-speed, low-latency internet access across India.
OneWeb India's venture is supported by Eutelsat OneWeb, which has bounced back from its November 2020 bankruptcy. The restructured entity boasts a consortium of stakeholders including Bharti Global, Eutelsat, the UK government, and SoftBank (TYO:9984), each holding a 12% equity stake. The Indian Space Research Organisation (ISRO) has already deployed 72 satellites as part of OneWeb's constellation, with plans to achieve complete global coverage by the end of this year.
The company is set to compete with other major players in the Indian telecom sector, such as Mukesh Ambani's Jio Satellite, Amazon (NASDAQ:AMZN)'s Project Kuiper, and Starlink. While these competitors also seek operational clearances, they are awaiting a government decision on the framework for spectrum allocation.
Despite the competitive landscape, Sunil Mittal downplayed the threat posed by Jio Satellite in the satcom services market, instead pointing to challenges from international entities like Starlink and Amazon. On the other hand, Mathew Oommen from Jio highlighted their readiness and established infrastructure capable of delivering gigabit-speed broadband-from-space services.
Both OneWeb and Jio are expanding into rural regions where broadband access is limited. OneWeb is preparing its geostationary orbit (GEO) and low Earth orbit (LEO) satellites for this purpose. Concurrently, Jio is working with SES Satellites' GEO and medium Earth orbit (MEO) constellation through its partnership.
As the industry anticipates the Telecommunications Regulatory Authority of India (TRAI) to finalize methods for satellite spectrum allocation amidst debates over auction versus administrative assignment, SES’s new O3b mPOWER constellation faces delays unrelated to its Indian market presence or JioSpaceFiber's impending service launch. Despite these technical glitches, JioSpaceFiber's rollout remains on track with access to alternative satellite systems.
In light of these developments, India is poised to secure a significant share of the global space communication market which is estimated to reach $1 trillion by 2030. With ISRO's longstanding contributions to space technology and its focus on services that benefit the common man, India aims for a $40 billion stake in this burgeoning sector by 2040.
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