Despite the telecom sector is moving towards a duopoly, the broadband sector is attracting several companies as demand for the internet has increased. Similarly, satellite communication players are trying their level best to foray into the Indian market, which is why several firms have started projecting growth in the sector.
Satellite Communication Industry By 2025 In India
According to research firm ICRA, India's satellite communication is likely to reach a two million user base in 2025. It could generate revenue of around Rs. 5,000 to Rs. 6,000 crores annually. The firm said that the operating environment is favorable for the increase of this technology.
"Satellite communication will remain crucial for broadband inclusion of a lot of remote and sparsely populated areas, which have not been connected through a terrestrial network. Several foreign players are eying this market and have launched/are in process of launching a constellation of satellites to cover the entire earth, including One Web, Starlink, and Amazon," SabyasachiMajumdar, Group Head & Senior Vice President, ICRA said.
The firm said that satellite communication is expected to complement the network infrastructure. The services are also suitable for applications such as the Internet of Things (IoT). It is important to note that OneWeb has received approval from the Department of Telecommunication. The company is allowed to offer services for 20 years.
Other Company Plans To Foray In India
Notably, Starlink and Amazon are also planning to foray into the country. The companies are likely to start their services by the end of the next year. However, the firm said there has been a lot of policy-related issues, such as licensing regime, lack of clarity on spectrum frequency, and allocation.
"The global adoption rates are also slow owing to a variety of reasons including high prices and low speeds, both these aspects should improve with time. In India, if the operating environment eases, it is expected that the satellite communication user base will rise to around 1.5-2 million by 2025, generating a revenue of around Rs. 5,000-6,000 crore annually," he added.
It seems that other Indian players are planning to foray into the same sector. Reliance Jio is also reportedly learning the regulations or norms and might join hands with players to launch the services.