Eutelsat OneWeb is working on rolling out new systems and technologies that will have comparable capabilities as Elon Musk’s Starlink satellite services following the joint ventures announced between SpaceX and the two Indian telcos Bharti Airtel and Jio Platforms.
Pranav Roach, OneWeb stakeholder and President of Hughes Network Systems India that provides broadband satellite services and solutions, said that while OneWeb cannot do everything Starlink can do, the company is confident in performing better in certain fixed applications.
Roach said, “Starlink capabilities use a newer generation system, allowing for better speeds. However, for fixed applications especially for enterprises, OneWeb may be better. So it depends on the use-to-use case. It would be true to say that whatever OneWeb can do, Starlink can also do but whatever Starlink can do, OneWeb cannot do. So, we’re also working on a new system that will have the same capability as Starlink and it will roll out in some months.”
Starlink’s hurdles in Indian market
While Starlink’s entry into the Indian market is not unexpected considering the area is critical for a global constellation, Roach and other stakeholders still agreed that the satcom provider will have a difficult time navigating Indian conditions, market, users and pricing.
“Many communication service providers entered and left this market over the last 30 years. It’s not an easy place to work in and certainly, you just can’t come in and dictate terms and especially now with users getting used to extremely low data areas,” said Roach.
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Even sources knowledgeable about the SpaceX-telcos collaborations said the Indian giants were still deliberating on whether Starlink services should be distributed on a segmented manner or left up to the customers’ discretion. The alliance will largely enable both telcos to expand B2B connectivity and related offerings to enterprises and businesses in remote areas that are otherwise lacking in fibre/FWA connectivity, Citi Research said in a recent report.
It may be noted that IP Access International, a US connectivity provider, observed that while Starlink is more consumer oriented with a focus on remote-area clients, OneWeb is more business-focused. Further, OneWeb already received all the necessary authorisations from the Indian government to provide services in India whereas Starlink is still negotiating with authorities.
Starlink to struggle with market prices
Starlink’s biggest hurdle in cracking the Indian market is in terms of costs. The company’s service plans and coupon calls are quite high, which may not work well in a cost-conscious market like India.
Starlink’s price is almost 10-14 times higher than India’s major broadband providers, as per Bernstein brokerage firm’s report. These are extremely high prices especially for the rural populations that Starlink aims to penetrate.
According to Roach, the market dynamics for satellite companies in India will only be clear once the Telecom Regulatory Authority of India (TRAI) releases its pricing and regulatory recommendations for the sector.
“We have to wait for the pricing rules, spectrum regulations to come out to see how they will impact. Equipment costs and one-time costs may be pretty similar for both companies. Service plans will vary depending on whether it is consumer or enterprise or business application. Starlink obviously has the mobile capability and can work with handsets. Whereas OneWeb is for fixed locations. So there are different systems and different capabilities,” said Roach.
