Sources said that Amazon is finally ready to start the process to bring its Project Kuiper satcom services to India.
Amazon to Enter India's Satcom Space with Project Kuiper
This move is sure to send sparks flying the satcom sector, especially satellite broadband, as Project Kuiper will go against OneWeb and Starlink. In the coming days, the company will get in touch with the government to discuss modalities, authorisations, permits, landing rights and satellite bandwidth leasing costs.
The e-commerce giant is investing over $10 billion in the project. Under Project Kuiper, the company aims to build a constellation of 3,236 low-earth orbit (LEO) satellites.
As per industry executives, India is a critical emerging satellite internet market. Therefore, Amazon can't afford to lose out on a potential $500 million near-term revenue opportunity that the country represents.
Three-fourths of India's rural rural population have no access to broadband. Most of these locations are underserved or unserved by cellular or fiber connectivity. That makes satellite broadband a good alternative. However, the costs associated with them at the moment are certainly off-putting at present.
Still Competition from OneWeb and Starlink
In India, OneWeb and Starlink have already announced significant plans. Starlink and OneWeb are making preparations to commercially launch their services in the country.
Both of these companies have extensive satellite constellations, however, in that regard, Starlink is miles ahead of its competitions. The Elon Musk-led company has put more than 7 times as many satellites in orbit than its nearest competitors. Keeping in mind that Amazon is yet to put a single satellite in orbit, Project Kuiper can see cutthroat competition in its infancy. However, Project Kuiper's entry could mean that the price per GB of satellite data goes down massively.
Anil Prakash, DG, SIA-India, said, “the combined presence of Amazon, SpaceX and OneWeb can create more healthy competition and make satellite broadband services more affordable and help connect the unconnected, especially when the Indian government is backing LEO constellations for delivering mass satellite connectivity in rural and remote regions”.
For now, it looks like Amazon will fly solo in this space. However, if it is looking to go with an Indian telecom as partner, the only two options they have are Reliance Jio and Vodafone Idea. So far, there is no clarity on the matter.
Apart from this, satcom service providers also have a great B2B opportunity in this space. Using satellite backhaul, these companies can help enhance rural coverage and increase connectivity. However, India does not allow for satcom operators other than those with a NLD permit to support satellite backhaul.