BENGALURU, June 13 (Reuters) - A joint venture between
Reliance Industries' Jio Platforms and
Luxembourg-based SES to provide gigabit fibre
internet has won approval from the Indian space regulator to
operate satellites there, a government executive said.
The three approvals issued to Orbit Connect India - which
aims to provide satellite-based high-speed internet access -
come as companies from Amazon.com ( AMZN ) to Elon Musk's
Starlink have been vying for the go-ahead to launch satellite
communication services in the world's most populous nation.
The authorisations have not been previously reported. They
were granted in April and June from the Indian National Space
Promotion and Authorisation Centre, known as IN-SPACe. These
allow Orbit Connect to operate satellites above India, but
further approvals are needed by the country's department of
telecoms to begin operations.
Reliance, which owns Jio, did not respond to an email
seeking further details.
Inmarsat, another company hoping to provide high-speed
satellite-based internet, has also gotten approval to operate
satellites over India, IN-SPACe chairman Pawan Goenka told
Reuters. Two other companies, Elon Musk's Starlink and
Amazon.com's ( AMZN ) Kuiper, have applied.
Eutelsat's Bharti Enterprises-backed OneWeb was
given all of its approvals late last year.
India's satellite broadband service market is expected to
grow 36% per year over the next five years and reach $1.9
billion by 2030, according to the consultancy Deloitte.
Globally, the race to connect rural areas of the world via
space-based internet is accelerating. Amazon ( AMZN ) plans to invest $10
billion in Kuiper, which was announced in 2019, the year SpaceX
began deploying its first operational Starlink satellites.
Last week, Sri Lanka gave Starlink preliminary approval to
provide internet services there.
Goenka said the more companies were involved in the sector
in India, the better off consumers would be.
"Comparatively low pricing of communication services in
India will compel global players to drive innovation to reduce
their pricing," said Goenka, the former managing director of
automaker Mahindra & Mahindra.
"This is already being done in many industries like
automotive, where multinational OEMs had to innovate to meet the
expectations of Indian consumers of high performance and low
cost."
IN-SPACe will also soon authorise private companies to
operate ground stations, he said, which would enable satellite
operators to download data as they pass over India.
Prime Minister Modi's government, which just won a rare
third term, has been pushing the development of India's space
industry.
This year, it opened the gates for foreign direct investment
in the sector, saying outside companies could invest in the
manufacture of components and systems or sub-systems for
satellites up to 100% without approval.
As a result, investors' interest has "significantly
increased", Goenka said.
"Last year investments into private companies were $2
million-$7 million. This year they are talking $20 million-$30
million," he said. "The proof of concept has happened."