According to the minister of state for communications and rural development, satellite communication (satcom) services are not expected to pose a competitive threat to India’s existing telecom operators owing to higher tariffs and constraints in subscriber base and data speeds.
The minister attributed this to the limited capacity available with satellite service providers, noting that when distributed across the country, each district could only accommodate approximately 40,000 to 50,000 connections.
The minister emphasised that, compared to terrestrial networks, the upfront cost of satellite services is significantly higher, making them less likely to impact the subscriber base of existing telecom operators.
Satcom offerings are expected to cater primarily to rural and remote regions, which are currently served largely by Bharat Sanchar Nigam Limited (BSNL). Despite its record capital expenditure in deploying 4G sites, the minister noted that BSNL will not increase tariffs, maintaining its focus on expanding market share.
