Speed, price, and unobstructed access to the sky are demerits of satellite broadband. Perhaps, offering satellite broadband to government enterprises, hospitals, and local bodies under PM Narendra Modi’s program ‘Digital India’ can do wonders.

(The column was first published on my website)

You would certainly appreciate brushing up on some basics before discussing vital issues.

How does this technology work? Put simply, satellite internet works like DTH. Satellites and receiver dishes are the main components. Internet service providers have launched dedicated satellites in low/high earth orbit. The ISP transmits internet signals to these satellites. Further, the satellite dish installed on the house or office rooftop receives these signals and sends them to the modem. Finally, the device converts these signals and provides a workable internet connection. 

As no expensive ground-led infrastructure deployment is required, satellite-based internet can reach remote corners where cable, fiber, or even 4G internet service is missing. So yes, satellite broadband has the potential to provide internet service across nooks and corners of India. 

Affordability and technical factors

No doubt. Government organizations, businesses, and residential customers can gain from the availability of satellite broadband. Yet, there are some ‘ifs and buts’ involved. 

Telecom secretary K. Rajaraman highlighted a crucial point during one of his recent media interactions. He said, “India is a diverse nation. Therefore, the country requires satellite internet devices that are affordable and resilient to geographical conditions.”

Now, let’s try and decode his statement.

We recently interacted with Douglas Dawson. He is the president of CCG Consulting and makes it in the list of most successful telecommunications consultants in the United States. In addition, Dawson’s blog, POTs and PANs, is quite popular with tech enthusiasts.

Speed, price, and unobstructed access to the sky are demerits of satellite broadband. 

1. Speed 

Viasat and HughesNet, both companies, have been providing satellite-internet service in the U.S. for decades. They manage to deliver around 25 MBPS speeds in most areas. Plus, there are data allowance caps on usage. 

New entrants like Starlink do promise faster speeds and lower latency. For example, the download speeds on Starlink are in the range of 50 Mbps – 150 Mbps.

2. Technical drawbacks

You guessed it right, every technology has some. The receiver and modem require a constant electricity supply. Most importantly, the dish requires unobstructed access to the sky. To sum it up, mountains, clouds, rainfall, and even trees can obstruct satellite signals. 

“I happen to live in the mountains of North Carolina. I know a lot of folks around here who have tried it with mixed results. Hills and mountains can definitely block the satellite signal. But it seems like living where there are a lot of trees is equally as much of a problem. In some cases, the signal doesn’t work at all – in the best case; the speeds are a lot slower, said the president of CCG Consulting while sharing his opinion on issues faced by satellite broadband consumers living in hilly areas. 

3. The price factor 

Can everyone afford the service in countries wherever it is available? Well, compared to fiber, cable, or mobile internet, satellite-based broadband is much more expensive in countries where the service is available. There is no clarity on rates in India as of now. But the core equipment, like the dish and receiver, can cost more than Rs 50,000 unless subsidized. Hughes Communications India charges Rs 56,000 for the same. 

“Satellite broadband is the most expensive broadband. The average price of landline broadband in the U.S.> is about $75 in markets where there is not much competition and $65 where there is a competitor. FWA broadband using cellular frequencies costs between $55 and $65. Fixed wireless company prices are all over the map. Some charge less than landlines, but some have rates as high as $90. Viasat revenues average over $93 per customer per month, according to the company’s annual report. Starlink charges $110 per month and makes users buy the receiver for $599. Satellite is clearly the most expensive broadband. But for homes and businesses in remote areas, it’s often the only option. My impression is that satellite broadband is for folks with the money to afford it – but not for low-income households,” said Dawson.

Multiple players set to enter the market 

India has Hughes Communications India, One Web, Jio Satellite, Tata Group’s Nelco, and Musk-owned Starlink in the race. 

Hughes Communication India (with the ISRO) has already launched their service. And it is being used only by the defense ministry as of now.

Several other companies are waiting to enter India’s satellite broadband market. But first, everyone is eager to see if the government decides to allocate spectrum via an administrative route or plans an auction of satcom spectrum. Many might enter or exit once the government releases its spacecom policy draft for satellite broadband with norms for the industry. 

Satellite-internet can provide rural connectivity, reduce the digital divide, and boost the local economy. But, affordable or subsidized devices might play a crucial role in adaptability. 

Officials have acknowledged the crucial role of the affordability factor. However, service providers and the government are yet to specify if they plan to offer any subsidy to make the service affordable for the rural population. 

Government initiatives are a must. Perhaps, offering satellite broadband to government enterprises, hospitals, schools, and local bodies under PM Narendra Modi’s ‘Digital India’ initiative can do wonders.

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Nitten is a consultant journalist, and has worked with renowned newspapers, news agency in India. If you are looking for desktop journalist, writer, you can email Nitten- nittengokhaley24@gmail.com

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