Singtel joins queue to India’s satcom space

Singapore Telecommunications (Singtel) is eyeing the Indian satellite communication market, positioning itself as one of several global players eyeing the nascent but high-potential sector. The company plans to offer satellite communication-related services to both public and private enterprises through its wholly-owned unit, Singapore Telecom India (STIPL).

STIPL has been operating in India for over two decades, but a new Foreign Direct Investment (FDI) approval is required to expand its scope to include satellite communication services. Singtel, majority owned by Singapore's state investment firm Temasek Holdings, is a significant stakeholder in Bharti Airtel, India's second-largest telecom operator.

The company intends to utilize a global network of approximately 36-38 geo-stationary (GEO) satellites, as well as partnerships with entities like SpaceX's Starlink, to deliver these services. Singtel also boasts a platform that allows the integration of multiple orbit satellites, including GEO, medium earth orbit (MEO), and low earth orbit (LEO), with terrestrial fixed and mobile networks like 4G/5G.

This move adds Singtel to an increasing list of India's satcom aspirants, which includes Elon Musk's Starlink, Jeff Bezos-run Amazon Leo, Reliance Jio, and Bharti-backed Eutelsat OneWeb, all of which plan to offer services using low earth orbit satellites.

However, none of these applicants have been able to launch services in India due to challenges such as lack of security clearance, uncertain spectrum pricing, and regulatory tussles with traditional telecom operators. Starlink recently re-applied to the Indian government for authorization for its Gen 2 LEO constellation, which can offer direct-to-device services.

India's space economy is projected to reach $44 billion by 2033, increasing its global share to 8% from the current 2%, according to estimates. Singtel is currently providing broadcasting satellite capacity to a Direct-to-Home (DTH) operator in India, for which it has the necessary approval. The company invests significantly in the space segment, particularly to support its plans for India.