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India is beginning to harness satellite Internet to boost connectivity, marking a new wave of efforts to bridge prevailing digital divides.
Image Source: Getty
The recent approval of SpaceX’s Starlink to establish operations in India, and the ongoing clearance-related processes mark a potential milestone in India’s efforts to expand internet penetration—especially in remote and underserved regions marks a major milestone in its expanding internet penetration, particularly in remote and underserved regions where traditional fibre infrastructure has struggled to reach. By joining the Bharti Airtel–Eutelsat OneWeb and the Reliance Jio–SES ventures as one of only three licensed satellite broadband providers, Starlink’s arrival augurs well for India’s push toward universal digital access. With over 44.7 percent of the population still offline and the somewhat unsteady rollout of the Bharatnet broadband programme, satellite-based connectivity offers a viable alternative.
LEO satellite internet technology is increasingly emerging as a viable solution for actualising india’s internet connectivity goals.
Starlink’s Low Earth Orbit (LEO) satellites promise high-speed, low-latency internet—with typical speeds ranging from 25 Mbps to 220 Mbps—revolutionising connectivity in tribal, mountainous, and rural areas. Thus, the implications extend beyond simple internet access. This democratisation of connectivity holds massive potential for unlocking the aspirations of India’s digital economy. Allowing hitherto unconnected populations to access digital services also strengthens participation in the current AI revolution. India’s satellite broadband market is expected to grow at a Compound Annual Growth Rate (CAGR) of 36 percent to US$1.9 billion by 2030. It has strong, positive implications for the growth of digital applications, including the development of AI solutions.
To chart a robust and future-ready digital ecosystem, dependent on seamless internet connectivity, it is essential to draw lessons from global best practices. The United States (US) presents a compelling model, combining public investment, regulatory reform, and private innovation to drive scalable and inclusive internet access through satellite technology, thereby helping to bridge its digital divide.
Valued at US$2.24 billion in 2023 and projected to grow to US$8.03 billion by 2032 at a CAGR of 15.23 percent, the US satellite internet sector is driven by private innovation and investment from players such as SpaceX (Starlink), Hughes Network Systems, and Amazon’s Project Kuiper (though their service is not operational yet). They are also deploying thousands of satellites to deliver high-speed, low-latency connectivity nationwide. This is complemented by the US policies, including the Federal Communications Commission’s (FCC) spectrum reforms, which allow satellite communications in the 12.7 GHz and 42 GHz bands, facilitating up to 20,000 megahertz of spectrum use for satellite broadband. Crucially, large-scale funded programs such as the US$42.5 billion Broadband Equity, Access, and Deployment (BEAD) initiative and the US$20.4 billion Rural Digital Opportunity Fund recognise and enable the critical role of satellite internet in hard-to-reach areas for fibre-based internet connectivity.
International heavyweights like SpaceX’s Starlink plan to enter the Indian market through partnerships with domestic telecom giants Airtel and Jio, leveraging their retail presence, distribution networks, and customer support.
Furthermore, Australia has also built a robust framework with its Sky Muster satellite service connecting over 400,000 rural and remote premises via geostationary satellites. Programmes such as Strengthening Telecommunications Against Natural Disasters (STAND)—aimed at disaster resilience—and the Telecommunications Disaster Resilience Innovation Programme (TDRI)—which supports innovation through LEO-based and deployable communication technologies—reflect Australia’s holistic approach. As India tackles its connectivity challenges across remote geographies, examining these international models provides a strategic lens to shape policies, scale infrastructure, and enable inclusive digital access.
India has made substantial progress in increasing internet penetration and strengthening its digital infrastructure through coordinated initiatives such as the transformation of its Universal Service Obligation Fund into the Digital Bharat Nidhi, boosting last-mile digital connectivity. The gradual expansion of the BharatNet scheme aims to provide broadband and Wi-Fi hotspots to villages across the country.. Building on this momentum, technology has increasingly emerged as a possible solution for actualising India’s internet connectivity goals.
India is approaching this by integrating satellite-based internet connections within its domestic market through private partnerships with global leaders. Companies such as Reliance Jio and Bharti Airtel are partnering with Luxembourg’s SES and Eutelsat OneWeb, respectively, to harness fleets of satellites; both are currently conducting spectrum trials and complying with their security requirements.
Satellite providers could reduce hardware costs, localise pricing, and collaborate with Indian telecom companies to offer integrated service bundles, ensuring affordability and practical usability for diverse Indian consumers.
International heavyweights such as SpaceX’s Starlink also plan to enter the Indian market through partnerships with domestic telecom giants Airtel and Jio, leveraging their retail presence, distribution networks, and customer support. This collaboration aims to make Starlink’s satellite internet widely accessible especially in difficult terrain, by potentially integrating it into existing telecom service bundles. Regulatory initiatives are actively supporting this integration. TRAI has proposed a 4 percent revenue levy and zero rural/ remote area user surcharge to incentivise rural deployment, with spectrum now allocated administratively in line with global norms.
Satellite internet in India however faces key challenges that limit its widespread adoption. One major hurdle is pricing; global satellite internet plans, such as Starlink’s, range from US$10 to 500 per month with upfront hardware costs up to US$380, making them significantly costlier than Indian broadband plans, which start as low as US$ 5-7 monthly, providing 1 Gbps speed and often include other incentives and streaming services. Technical limitations still exist; currently, satellite broadband requires a clear line of sight to the sky. This limitation makes it impractical for indoor use and unsuitable as a replacement for terrestrial networks, which offer seamless indoor coverage and support for densely populated urban areas. The way forward involves using satellite internet as a complementary solution rather than a substitute, focusing on rural, remote, and areas susceptible to disasters, where laying terrestrial infrastructure is impractical. To succeed, satellite providers could reduce hardware costs, localise pricing, and collaborate with Indian telecom companies to offer integrated service bundles, ensuring affordability and practical usability for diverse Indian consumers. As new partnerships are forged, and regulatory support extended, satellite internet could play a pivotal role in bridging India’s digital divides and enabling inclusive growth.
Debajyoti Chakravarty is a Research Assistant at the Observer Research Foundation.
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Debajyoti Chakravarty is a Research Assistant at ORF’s Center for New Economic Diplomacy (CNED) and is based at ORF Kolkata. His work focuses on the use ...
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