Amazon on Thursday submitted its application for satellite communication services in India to the department of communications (DoT), officials aware of the matter said. The US-based company has applied for the licence under its Project Kuiper programme and will offer satellite-based internet, thereby joining the likes of players like OneWeb, Jio Satellite, and Starlink.
The development is crucial because the company is set to luanch its first ever satellites, KuiperSat-1 and KuiperSat-2, from Cape Canaveral in Florida on October 6.
In India, Amazon submitted the application after discussions with the government officials regarding the compliance requirements it must meet, the sources said.
To provide satellite-based communication services, including internet broadband, companies need to get a Global Mobile Personal Communication by Satellite (GMPCS) licence from the government. Currently, the government has issued GMPCS licences to Bharti Group-backed OneWeb and Jio Satellite, whereas Starlink’s application is expected to get approved this month.
Amazon initiated research and development on Project Kuiper in 2018 and received the license from the US Federal Communications Commission (FCC) to deploy and operate Project Kuiper satellites in 2020. The company has committed to invest over $10 billion in the project to provide affordable broadband to underserved communities worldwide.
In contrast to OneWeb and Starlink, which have approximately 630 and 4,600 satellites in orbit, respectively, Amazon’s Project Kuiper is still in the process of building a meaningful satellite base to offer satellite broadband services. The company plans to launch 3,200 satellites over the next six years to form a constellation for satellite internet connectivity.
The opportunity in the satcom space in India is huge as fiber connectivity is not possible in far-flung areas.To make the services affordable, however, the companies may need some form of government subsidy.
Pricing for satellite broadband space will be at a premium to fiber-based broadband services, but with the entry of players like Project Kuiper and Starlink some promotional offers are expected.
“Amazon hasn’t announced pricing details yet, but affordability is a key principle of Project Kuiper. Amazon has a longstanding commitment to low prices, and lots of experience building popular, low-cost devices like Echo Dot and Fire TV Stick,” according to the information available on the company’s website.
As per industry estimates, the pricing of satellite Internet services is expected to be around Rs 8,000-10,000 per month along with one time set-up cost. This is significantly high, compared to affordable home broadband plans of Rs 399 per month by telcos such as Reliance Jio.
The companies are awaiting clarity on the method of allocation of spectrum and foreign direct investment norms, which are crucial before services can be started.