Amazon Likely To Bring Satellite Internet Services To India

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Amazon is expected to bring satellite internet services to India. This move is likely to increase competition in the satellite internet segment as OneWeb and Starlink are also planning to start their operations soon in the same segment.

 

Amazon Likely To Bring Satellite Internet Services To India

The e-commerce company is likely to discuss this matter with the Government about the permit, bandwidth cost, and landing rights. The Department of Space provides landing rights to foreign satellites into the country.

Amazon Investment Plans

Amazon is likely to invest $10 billion to build the constellation under its initiative called Project Kuiper. However, the company has not shared its plans for India yet.

"Talks with the DoS and Department of Telecommunications will happen on the necessary regulatory approvals to bring Amazon's high-speed broadband services to India via its Project Kuiper satellite constellation as part of the global launch," sources were quoted by ET.

Satellite Internet Services And Revenue Opportunity

The report said that the satellite internet market in India is expected to generate $500 million revenues in the near term, which is why Amazon can't ignore this opportunity. The satellite internet services are expected to offer internet in rural and remote areas.

Interestingly, in India, a large number of the population lives in rural areas, and they do not have internet access as several locations are without connectivity.

"As LEO satellite technology rapidly gains global scale and bandwidth leasing costs head down, it would make strong business sense for Amazon to quickly make inroads into India's emerging satellite broadband market to effectively compete with OneWeb and SpaceX," Rohan Dhamija, partner and head, Analysys Mason said.

Furthermore, the report added that Amazon has not shared its plans to join hands with Indian telecom players. It states that Airtel is already backing OneWeb, which means Jio and Vodafone-Idea are left.

 

However, one should not forget that Amazon is already involved in legal issues with Reliance Industries over the Future Group assets. On the other hand, sources said that Jio is also studying the new internet space.

Satellite Internet Space In India

It seems that this is going to another segment, where all big companies are likely to invest as it will provide connectivity to rural and unconnected areas.

In fact, we expect that satellite internet can offer mobile broadband services in those locations, where telecom towers are not enough. So, this seems a good opportunity for all those companies that are planning to foray into the segment.

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