Jio Gets Nod for Satellite Internet in India Amidst Competition with Musk

Jio Gets Nod for Satellite Internet in India Amidst Competition with Musk

Bangalore - A joint venture between Reliance Industries' Jio Platforms and Luxembourg-based SES has received approval from the Indian space regulator to operate satellites in the country, according to a government official.

Orbit Connect India, the venture aimed at delivering high-speed satellite internet, has secured three crucial approvals. This development occurs amidst a competitive landscape where companies such as Amazon and Elon Musk's Starlink are also seeking permission to launch satellite communication services in India, the world's most populous nation.

The authorisations, which have not been previously reported, were granted in April and June by the Indian National Space Promotion and Authorisation Centre (IN-SPACe). These permits allow Orbit Connect to operate satellites over India; however, additional approvals from the country's Department of Telecommunications are required to commence operations. Reliance, which owns Jio, did not respond to requests for further details.

Additionally, Inmarsat has received approval to operate satellites over India, according to IN-SPACe chairman Pawan Goenka. Other companies, including Starlink and Amazon's Kuiper, have also applied for permissions. Eutelsat's Bharti Enterprises-backed OneWeb received its full set of approvals late last year.

India's satellite broadband market is projected to grow by 36% annually over the next five years, reaching $1.9 billion by 2030, according to Deloitte. Globally, efforts to connect rural areas via space-based internet are intensifying. Amazon plans to invest $10 billion in its Kuiper project, announced in 2019, the same year SpaceX began deploying operational Starlink satellites.

Recently, Sri Lanka gave Starlink preliminary approval to provide internet services there. Goenka highlighted that increased competition in India's satellite sector would benefit consumers, driving innovation and cost reductions in a market known for its comparatively low communication service prices.

IN-SPACe will soon authorize private companies to operate ground stations, enabling satellite operators to download data as they pass over India. Prime Minister Modi's government, which secured a rare third term, has been actively promoting the development of India's space industry. This year, foreign direct investment rules were relaxed, allowing up to 100% investment in satellite components and systems manufacturing without prior approval.

As a result, investor interest has significantly increased, with investments in private space companies rising from $2 million-$7 million last year to projected figures of $20 million-$30 million this year, indicating strong proof of concept, according to Goenka.

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