By 2022, satellite broadband may be launched in India. OneWeb, Space X and Hughes would like to launch satellite-based fast internet services.
As you know, OneWeb is a joint venture of Bharti Global and the UK government. Space X is owned by Elon Musk. Hughes is the US satellite company. Space X has named the services Starlink. It offers its beta version service on pre-orders before launch. Pre-order offer is open in tans-Himalayan zones.
Satellite internet would better serve India’s rural and remote areas. It will go a long way to give broadband connectivity to all Indians.
Satellite networks can be rolled out and scaled up faster and more cost effectively than the traditional networks. They are more suited to population living in remote and inhospitable regions.
The government is considering its space policy. In India, there is the Satcom Industry Association (SIA-India). Currently, satellite broadband is restricted to enterprise market.
Satellite broadband will stimulate banking. Satellite broadband can provide the backhaul or connectivity between cell towers and telco’s core cellular network in rural areas. Each cell tower would need at least 20 Mbps to deliver cellular backhaul via satellite.
Satellite connectivity generates high average revenue per user (ARPU). It costs high in terms per Mbps of connectivity. These prohibitive costs are not conducive for its widespread use unless the prices crash. Currently per GB prices are several times higher than what is charged for mobile data.
Such costs are natural as there is no access to high throughput satellites offering 100-500 Gbps of bandwidth. At present ISRO satellites have a maximum bandwidth of 12 Gbps. And these are reserved for government programmes. Satellite broadband providers cannot lease bandwidth capacity directly from foreign satellite operators. They have to go via Department of Space (DOS). It pushes up leasing cost. Cost control is the crux of the problem. To be successful, the operators will have to focus on each element of cost.
Indian players have to lease bandwidth from DOS. Then they have to seek permit from DOT for VSAT, or enter into a third party contract with an existing VSAT permit holder. All this shoots up costs.
A satellite’s life is 15 years, but bandwidth contract is only for a year or less. At least these leasing contracts should be for three years.
India is working to upgrade its satellites — offering more than 100 Gbps bandwidth. It is still not certain how much time it will take.
The international rates for satellite broadband are $1 per GB. In future, Indian prices may fall to reach this level.
Satellite broadband is the backbone for IoT networks, Industry 2.0, M2M communications.