Satcom must follow telecom industry’s low-cost, high-volume model to succeed: Scindia

NEW DELHI: As satellite players such as Elon Musk’s Starlink and Eutelsat One Web await spectrum allocation to launch services, communications minister Jyotiraditya Scindia on Wednesday suggested that the companies should go in for affordability in pricing at launch to gain scale, in line with the strategy adopted by telecom and broadband providers.

“India has had a very strong track record of showing the world how high volumes and low pricing can lead not only in greater penetration, but also (in realising) great amounts of revenue for firms,” Scindia said in the Lok Sabha.

The minister cited the business case and growth of both the mobile industry as well as broadband players where growth has been strong on affordable prices. “Today, as far as telecom is concerned, we have the highest number of subscribers at the lowest rate possible. What used to be 50 paise a minute in 2014 (in voice calling), today is 0.03 paise a minute, a 97% decline in cost. And similarly, for 1 GB of data, what used to cost Rs 287 earlier today costs Rs 9. This is roughly about 9 cents, whereas the world average is at $2.49. So, we are at 5% of the world's cost today in India.”

He said that the satcom players should take a cue. “I'm sure that in the times to come, satcom players will also realize the concept of economies of scale and will possibly try and price so that they can get the maximum penetration. But, that is not something that the government can dictate, and I want to be very clear on this.”

The minister said the satcom policy framework is in place, with spectrum slated for administrative assignment. “Three licences have already been issued — to Starlink, Eutelsat OneWeb and Reliance.”

He said that two key aspects need to be addressed before operators can commence commercial services. “The first pertains to spectrum assignment, including the determination of administrative spectrum charges, which falls under the purview of the Telecom Regulatory Authority of India. TRAI is currently engaged in finalising the pricing framework. The second aspect relates to security clearances from enforcement agencies. To facilitate this process, operators have been provided with sample spectrum to conduct demonstrations, and all three licensees are currently undertaking the required compliance activities.”

The minister said that once the operators demonstrate adherence to prescribed security norms — including the requirement to host international gateways within India — the necessary approvals will be granted, enabling the rollout of satcom services to customers.

Scindia also spoke about India’s growing self-sufficiency in telecom infra technology. “India’s telecom exports have increased by 72% over the last five years, while imports have remained stable at the same level. These figures reflect the story of India’s growing self-reliance in the telecom sector.”

The minister said India’s telecom exports have risen from Rs 10,000 crore in 2020–21 to Rs 18,406 crore in 2024–25, while imports have remained capped at around Rs 51,000 crore. “India is not only moving rapidly towards self-reliance in the telecom sector but is also preparing itself for global leadership.”

In response to a supplementary question, Scindia spoke about the growth in India’s 5G deployment. He said that out of 778 districts in the country, 767 districts have already been connected to the 5G network. “India currently has 36 crore 5G subscribers, a number expected to rise to 42 crore by 2026 and reach 100 crore by 2030.”