What you need to know about space internet
With rural broadband connectivity poor and many locations without fibre or cellular connections, broadband from space (BFS) services are seen as a viable alternative in India. Here's what you need to know.
By Kalyan Parbat, ET Bureau |
Agencies
With the potential huge, marquee names are already keen on entering the space. How does it pan out for the consumers? ET’s Kalyan Parbat explains:
What’s a BFS service?
What’s a BFS service?
- A high-speed wireless communication to bring internet traffic to a consumer’s home/office via a satellite network in space, also called satellite broadband
- Satellite broadband data speeds can go beyond 300 Mbps, but initial peak speeds likely 100 Mbps How BFS Works
- A satellite network involves geostationary (GEO) or low-earth orbit (LEO) satellites. The heart of a satellite network operation is an earth station gateway located in a particular region
- Gateway links satellite network to the Net
- Consumer needs a device, called a user access terminal (UT) and antenna to connect to a satellite network
- Bharti-backed OneWeb, Elon Musk’s SpaceX to launch satellite broadband in India next year via LEO satellites. Canada’s Telesat and Amazon’s Project Kuiper to enter India too
- These companies plan a B-B model, tie up with existing telcos, service providers to reach the end consumer.
- US-based Hughes to invest in $500 m GEO satellite for India market
- Satellite broadband service costs nearly $20 or Rs 1,500 a GB now. Here’s why
- Satcom players can’t lease foreign satellite capacity directly. Need to go via DoS, jacking up leasing cost, 10 times global average
- No access to high-throughput satellites UTs expensive; base models cost nearly $1,000
- If policy deterrents go away and UT prices crash, satellite broadband rates can plunge to Rs 100 a GB
- User volumes must jump and new LEO satellite tech must mature fast for satellite broadband rates to drop
- India’s new Spacecom policy likely by March 2022
- Clarity around licencing rules for LEO satellite operators
- Clarity on quantum of 28 Ghz satellite spectrum to be blocked for 5G
- Clarity on spectrum bands for satellite UTs and satellite gateways
- $4.7 billion Size of India’s satellite services market by 2025, a CAGR of 4.3%
- $1 billion Current satellite broadband revenue opportunity
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