Introduction to Global Connectivity
The concept of a global village emphasizes the importance of data and internet connectivity in today's world. The internet functions as a network of networks, and its utility is diminished if it doesn't connect people universally. Telecom and broadband industries heavily rely on network externalities.
Recent Developments in India
- Starlink's partnership with Bharti Airtel and Reliance Jio's subsequent announcement marks significant progress in connecting underserved regions in India.
- These satcom entries could greatly enhance the quality of life, especially in rural areas, by bridging the digital divide.
Current Connectivity Challenges
Despite progress, there remains a substantial 65% digital divide between urban and rural India. Approximately 48% or 700 million people remain unconnected or under-connected.
- Government efforts to connect rural and remote areas have been hampered by challenges in infrastructure deployment.
- Satellite airwaves remain underutilized over regions lacking connectivity.
Potential of Satcom and Telecom Collaboration
- Collaboration between terrestrial mobile operators and satcom providers can significantly improve high-speed internet access.
- Starlink provides high-speed internet (20-100+ Mbps) in other countries, which could be beneficial for India.
- Airtel’s collaboration with Eutelsat OneWeb and Jio’s agreement with Starlink are steps towards comprehensive national connectivity.
Market Dynamics and Policy Support
The concept of ‘coopetition’ — collaboration amid competition — is emerging in the market. This approach can potentially grow the broadband market by 30-50%.
- Policymakers and regulators are urged to make satellite broadband affordable for rural areas.
- The Telecommunications Act 2023 has clarified spectrum allocation for satcom.
Conclusion
The Starlink-Airtel and Jio tie-ups represent pivotal steps towards a digitally-inclusive India. These partnerships promise benefits for consumers, industry, and society, marking the maturation of this techno-economic sector.
