Swapnil Srivastava, Director, TMT, EY Parthenon

Today, India is a proud satellite nation with numerous innovations in satellite design, indigenous manufacturing and successful satellite launches in the recent past. In the Union Budget 2025-26, the Department of Space has been allocated over Rs 130 billion, which is an over 14 per cent year-on-year increase, emphasising the country’s strong focus on space technology.

The race for satellite communications in India was kicked off with the recent announcement by the minister for communications, Jyotiraditya Scindia, regarding non-terrestrial networks. He stated, “The advent of non-terrestrial networks, in addition to GEO, medium earth orbit (MEO) and low earth orbit (LEO) satellites, has given a new inflection point to telecommunications technology. I believe this presents a huge opportunity to be able to connect the hitherto unconnected population across the length and breadth of our country.”

Moreover, the government has decided to allocate spectrum to satcom companies without auction through an administrative methodology as per the Telecommunications Act, 2023, and the allocation price and other related norms will be suggested by the Telecom Regulatory Authority of India.

The Indian satcom market is expected to grow at a CAGR of 17 per cent in the next five years to reach almost $7 billion by 2030 from the current $3 billion. Three major factors driving potential investments in India’s satcom space are:

  • Bridging the digital divide: India’s internet penetration stands at 52 per cent, indicating that a large part of the population is still under connected. Satcom is revolutionising connectivity by bridging the digital divide and ensuring access to a full array of digital services across sectors.
  • Advancing communication technology: Satcom technology is opening up new opportunities, including broadband internet, direct-2-device (D2D) connectivity, and maritime and aviation connectivity.
  • Technology applications: Satcom is bolstering defence and security infrastructure, enabling advanced earth observation and remote sensing applications, and empowering autonomous systems and robotics.
  • India had the fastest roll-out of 5G networks in the world. Now with satcom services preparing for launch, there is a huge opportunity for it to work in tandem with 5G networks, to realise the full potential of 5G services – low latency, high speed service with full coverage for millions of connected devices. This integration of terrestrial and non-terrestrial technologies will help in enhancing network performance, reducing operational costs and enabling seamless connectivity. New business models will emerge including D2D connectivity, satcom as backhaul for 5G to extend coverage in remote/rural areas, deployment of enhanced networks with satcom providing jam-resistant links, complementing 5G’s encrypted communications.

Although India is behind the US and China when it comes to LEO constellations for commercial satcom broadband services, leading telcos and global players have laid out aggressive investment plans to mine the economic potential. Telcos are partnering with global satellite players to roll out services:

  • Airtel + Eutelsat OneWeb: This partnership aims to enhance connectivity in remote and underserved areas through Eutelsat’s GEO and LEO satellites.
  • Jio + SES: Jio Platforms and SES formed a joint venture in 2022 to expand broadband access in India, utilising SES’s GEO and MEO satellites to complement Jio’s terrestrial network.
  • Hughes Communications + Bharat Broadband Network Limited (BBNL): The two companies have collaborated to provide high speed broadband connectivity to remote and underserved areas in India, particularly through BBNL’s BharatNet project.

International players such as SpaceX’s Starlink, Amazon’s Project Kuiper, Rivada Networks, Viasat and Globalsat have all shown considerable interest in the Indian satcom market.

Satcom’s promise of enhanced connectivity comes with its fair share of challenges that need quick resolution for it to succeed in India. The top issue for satcom players is navigating the regulatory landscape – differing asks from terrestrial and NTN players on spectrum allocation, challenges for orbital slots, and complex and time-consuming processes for terrestrial market access and approval.

Another key issue is the high technology and operations and maintenance costs, although satcom has a cost advantage over terrestrial network installations in remote areas. Moreover, current mobile handsets are incompatible with high frequency satellite signals, limiting direct connectivity options.

Satcom is a disruptor, which will provide a competitive impetus to the Indian telecom sector. It has the potential to positively impact broadband connectivity for the next several decades. The future focus will be on integrating satcom technology with Artificial intelligence-driven automations to enhance satellite performance, flexibility and cost efficiency. India must not miss this opportunity as it will lead to not only net new subscribers but also to massive innovations in space technology, with a positive impact across crucial sectors.