In-depth: Satco-telco partnerships to unlock new revenue streams, expand 5G to India's remote regions
NEW DELHI: India's telecom landscape is undergoing a significant transformation with the emergence of satellite broadband as a complementary connectivity solution to terrestrial networks.
Traditionally dominated by mobile and fiber networks, the
industry
is witnessing growing collaboration between telecom operators and satellite communication (
satcom
) providers, driven by the need to extend high-speed internet access to remote and underserved regions where terrestrial infrastructure remains limited or unviable.
Global satcom players like Elon Musk's SpaceX, and Eutelsat OneWeb are entering the Indian market through strategic partnerships with leading Indian telecom players such as
Reliance Jio
and
Bharti Airtel
, to foray into regions in the country that are either unpenetrated or underpenetrated by broadband services.
Notably, Bharti Enterprises holds a stake in the global satellite company Eutelsat OneWeb. Other contenders in India's satellite communication space include Amazon's Project Kuiper, Reliance Jio-SES, and Apple partner
Globalstar
.
These alliances are expected to foster hybrid network models integrating terrestrial and satellite technologies, potentially reshaping the broadband ecosystem and accelerating the rollout of
5G
and other advanced services. The partnerships are also expected to unlock new business opportunities for the sector.
The joint working of telecom carriers and satcom providers could support strategic co-existence, driven by increasing association around hybrid network architectures. This synergy could give rise to vertically integrated satellite-terrestrial solutions, redefining connectivity paradigms and challenging conventional broadband delivery models, according to experts.
'This will allow
Starlink
to navigate regulatory and localisation hurdles more efficiently by leveraging the telcos' existing infrastructure, manufacturing ecosystems and distribution networks,' said Varun Gupta, senior analyst, Counterpoint Research.
He added that integrating Starlink's LEO network with their mobile networks could pave the way for Jio and Airtel to unlock new revenue streams in enterprise, government, and remote connectivity segments while also minimising satellite deployment capex through shared infrastructure.
The integration of satellite broadband into the telco ecosystem represents a strategic advancement towards a more connected and inclusive digital future, and the collaborative approach not only broadens the reach of broadband services but also drives innovation and growth within the industry.
'Satellite-based broadband services are not positioned to displace traditional networks but to enhance them by extending coverage and adding capacity, particularly in underserved and remote areas of India.'said Purushothaman KG, partner and head - technology transformation & telecom, KPMG in India.
Rural broadband and enterprise services are among the sectors that could see some level of competition between telcos and satcos, with both eyeing cash potential. Satcom, however, would be better suited for use cases such as remote backhaul, maritime and aviation connectivity, energy and mining operations, and disaster recovery.
Telcos can leverage LEO satellite capacity for high-throughput, low-latency backhaul and network resilience, especially in geographies where terrestrial deployment is challenging and not economically feasible, Gupta added.
Globally, too, the partnerships between the two sectors are increasingly becoming common, particularly in markets such as France, Spain, Australia and Thailand.
Most recently, billionaire Elon Musk's Starlink has started its satellite internet service in India's neighbouring country, Bangladesh, with two broadband packages – Starlink Residence and Residence Lite – priced at 6,000 taka ($47) and 4,200 taka ($33) per month, respectively. This, in addition to a one-time cost of 47,000 taka ($372) to set-up the necessary equipment.
Satellite Backhaul: Complement to 5G Services
Satellite communication is also emerging as a critical backhaul alternative for extending 5G coverage in rural and remote areas. Rather than replacing terrestrial infrastructure, satellites, particularly Low Earth Orbit (LEO) and Medium Earth Orbit (MEO) systems, will complement fiber and microwave links by filling coverage gaps.
LEO/MEO satellites offer lower latency and higher throughput than traditional satellite systems, making IP-based 5G backhaul viable for service-critical use cases such as disaster recovery, border security and remote tower connectivity. However, their higher cost per Mbps limits widespread deployment, confining usage to areas where terrestrial solutions are infeasible.
While unsuitable for mass backhaul, satellite integration is pivotal for last-mile connectivity in off-grid or difficult terrains. This blend of satellite and terrestrial networks is key to realising a truly 'inclusive and resilient digital infrastructure in India', Purushothaman said.
Way Forward
These partnerships between telcos and satellite firms are not merely transactional but strategic and will enable telcos to secure satellite capacity and provide satellite operators with vital market access.
This co-existence strategy is a testament to the industry's forward-thinking approach and the collaborative approach not only broadens the reach of broadband services but also drives innovation and growth.
However, the mass adoption of satellite broadband is unlikely in the next two years, as mobile broadband still dominates the market.
'By the end of 2030, satellite broadband will likely remain limited to difficult terrains and hard-to-reach areas, while the majority of the population will be served by fiber and FWA networks,' Gupta said.
He concluded that the growing demand for digital services in sectors including education, healthcare, and government initiatives will drive satcom adoption in underserved areas, while land-based networks will continue to be the primary connectivity medium for scenarios that need broader coverage.
Indian telecom regulator TRAI has recently released its regulations for the administrative allocation of satellite spectrum.
Communications Minister Jyotiraditya Scindia on Tuesday said that India's satellite network rollout will be among the fastest globally, mirroring the rapid deployment of 5G in the country. He said the current $2.3 billion satcom market could grow nearly tenfold to $20 billion by 2028. 'This kind of growth—almost 10x in just three years—is unmatched anywhere else in the world,' Scindia said.-
The Space economy is projected to reach $44 billion by 2033, increasing its global market share from 2% to 8%, according to the Indian National Space Promotion and Authorization Center (IN-SPACe).
Starlink recently received a Letter of Intent (LoI) from the Department of Telecommunications (DoT) for a satellite communication license. It now awaits final approvals from the space regulator and spectrum allocation to begin services. Meanwhile, Bharti-backed Eutelsat OneWeb and Jio-SES have secured all regulatory clearances and are now waiting for spectrum allotment to commence commercial satellite broadband operations.
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