Satcom pricing up to companies, not govt: Scindia in parl

NEw new delhi The authorities testament non order the pricing of satellite internet services in India, with companies free to decide what they charge customers, Union communications minister Jyotiraditya Scindia told the Lok Sabha on Wednesday, even as he expressed confidence that India’s low cost telecom model could eventually push satcom players towards more affordable plans.“In regards to pricing, it is not something that the government can dictate. Pricing is something that the firms can dictate,” Scindia said, responding to questions on the affordability of satellite broadband, especially for rural and remote areas.The minister pointed towards India’s telecom history and argued that competition and scale have consistently driven prices down. “India has had a very strong track record of showing the world how high volumes and low pricing can not only lead to great penetration but also great amount of revenue for firms,” he said.Scindia backed his argument by pointing to the sharp fall in telecom tariffs over the past decade. Voice call rates, which stood at around ₹0.50 per minute in 2014, have dropped to about ₹0.03 per minute today, a decline of nearly 97%, he said. Data prices have seen an even steeper fall with the cost of 1 GB of mobile data coming down from ₹287 to about ₹9. By comparison, the global average cost of 1 GB of data is around US$ 2.49, meaning Indian users pay just about 5% of the world average, he said.“I am sure in the time to come, satcom players will also realise the concept of economies of scale and possibly try and price that so that they can get the maximum penetration but that is not something that the government can dictate,” he added.Scindia’s remarks came in response to a question by DMK MP Dayanidhi Maran, who flagged the struggle to get stable broadband in rural areas and questioned why the government was tying up with Starlink and Elon Musk instead of ensuring affordable connectivity through domestic means.The query comes amid recent confusion about Starlink’s India pricing. On December 8, Musk-owned Starlink’s website briefly displayed a monthly residential plan priced at ₹8,600, with a one-time hardware cost of ₹34,000. After social media backlash over the prices, the company clarified that its India website is not live yet and that service pricing for Indian customers has not been decided.“As telecom minister, my goal is to ensure that I offer the full bouquet of services to every customer and then the customer makes the choice as to which service he or she would like to avail of at which price point,” he said.Scindia also clarified that India’s satellite communication policy is already in place and that satellite spectrum will be allocated administratively, not through auctions. He noted that three companies, namely Starlink, OneWeb and Reliance, have already been issued licences to offer satellite internet services. However, he said two key clearances are still required before commercial services can begin.The first relates to the administrative pricing of satellite spectrum, which will be determined by the Telecom Regulatory Authority of India (TRAI). To be sure, this is not retail pricing but what the companies will pay the government. The second concerns security approvals from enforcement agencies. To speed up this process, the government has provided the companies with a sample spectrum to demonstrate compliance with security requirements. Once the operators meet these norms, including hosting international gateways within India, they will be cleared to roll out services to customers, explained Scindia.Maran also raised the issue of in-flight internet connectivity. On this, Scindia said the rollout is still underway. “In flight connectivity in process. Rules are being framed,” he said. “Now the ministry of civil aviation has to define the rules, second, the airline companies have to place a transponder on every aircraft. Then only can everyone receive signals,” he added.During the exchange, Lok Sabha Speaker Om Birla joked that the lack of in-flight internet at least offers passengers a short break from their phones, remarking that one is saved from mobile use for at least 2.5 hours as internet is still unavailable on flights in India.