New Delhi . In India, the Satellite Internet Service of Elon Musk has been approved by the Starlink Approved, but there have been definitely obstacles in the way in the way of Musk. After the recent agreement with Airtel and Jio, Starlink's way of entry into India has been somewhat clear but India's Telecom Regulatory Authority (TRAI) has planned to limit the license period for satellite broadband service to 5 years. The decision may be a major setback for Elon Musk's company Starlink, as the company demanded a 20 -year license.
What is the matter?
There was a big controversy in India over spectrum allocation for satellite broadband services. Musk's Starlink wanted him to get spectrum for 20 years, so that he could do long-term planning and provide cheap services. On the other hand, Mukesh Ambani's Reliance and Bharti Airtel wanted the period to be limited to 3 to 5 years, so that the Government of India could assess the market from time to time. Now TRAI has made up his mind to decide the 5-year time limit, accepting the suggestions of Ambani and Airtel.
Why a big shock for Starlink?
Alan Musk's Starlink has recently made a distribution deal with Reliance and Airtel to expand its satellite broadband services in India. However, the company needed a long -term license to make this business model a success. This decision of TRAI may cause Starlinks to have a problem in long-term investment and pricing in India.
What is the government's logic?
According to government sources, India wants to test the market of satellite broadband first, so that the correct spectrum price can be fixed. Currently traditional telecom companies get spectrum auction for 20 years, but will be allocated spectrum for satellite services for cheaper and limited time.
TRAI will send its final recommendations to the Telecom Ministry in the next one month. After this, the government will decide to implement it. The size of the satellite communication sector by 2028 in India is estimated to reach $ 25 billion. In such a situation, this decision can play an important role in deciding the future of this sector.
