Union Telecom Minister Jyotiraditya Scindia on Tuesday said Elon Musk-owned Starlink is yet to comply with security norms, and a licence for satellite communications services will be issued only after they meet all the requirements for services in India.
The satellite communication services major is in the process of completing all the requirements and will get a licence once they complete the process, the minister added.
“We are more than happy to give them (licence) if they (Starlink) comply with all the conditions. You have to look at it from a security perspective, making sure that all security concerns are addressed. When they do that we will be more than happy to give it. Obviously, they are in the process of doing it,” Scindia told reporters.
He was replying to a question on the status of the licence for Starlink.
At present, the government has issued a licence to Bharti Group-backed OneWeb and the Jio-SES joint venture Jio Satellite Communications. The two companies are yet to start their operations as they are waiting for spectrum allocation, for which pricing and rules are under process.
According to sources, the Telecom Regulatory Authority of India (Trai) is likely to finalise its recommendation on proposed rules related to spectrum allocation for satellite communications by December 15.
The government will evaluate Trai’s recommendations and thereafter decide on allocating spectrum to satellite communication companies, which will pave the way for satellite-based broadband services in the country.
When asked about the status of the Rs 24,700 crore bank guarantee waiver sought by Vodafone Idea, the minister said any decision of the government will not be company-specific, albeit it will have an impact on the entire sector.
“We have four players in the market as we speak, which is also very necessary from the sectoral point of view. Suffice to say India has probably the highest number of national telecom players compared to any other country. Bank guarantee waivers have already been given post-2022 auction. Any step that the government takes will be company-specific. It will be a sectoral step,” Scindia said.
The DoT has asked the telco to submit bank guarantees as an assurance for the spectrum payment of Rs 24,747 crore due in September next year.
As per norms, bank guarantees need to be submitted at least one year before the payment due date.
According to sources, the DoT has also reached out to the finance ministry on the issue of giving exemption to telcos from submitting bank guarantees for spectrum payment dues. VIL has sought relief, citing the spectrum auction rules of 2022 and 2024, under which the requirement for providing bank guarantees for the annual instalments has been removed. It has earlier cleared about Rs 16,000 crore interest obligation on the deferred payment and offered the government equities in the company.
The government holds around 23 per cent stake in VIL.
The minister said the telecom sector itself has received a tremendous boost in the last two and half years.
“All the assistance that has been given from a sectoral point of view, except in the case of BSNL. For the first time in India’s history and from a global perspective, we have a company that has come up with its own 4G indigenous stack. We are the sixth country in the world to be able to do that,” Scindia noted.
He said the support given to BSNL’s 1 lakh mobile tower is expected to be rolled out by May-June next year on a 4G system and some of those sites will move on to indigenously developed 5G by mid-2023.
“With this, not only India is leading in terms of services but also in terms of technology. For the first time, India’s voice is being heard extremely loudly within ITU ( International Telecommunications Union). Many of our technology papers like 5Gi have also been accepted at ITU. With 5G, we have made our presence felt. With 6G, we will have a tremendous presence,” Scindia said.
In response to a question on MTNL, the minister said there is no insecurity about the debt raised by the loss-making public sector telecom as it is backed by a sovereign guarantee and the business of the company will be transferred to BSNL.
Talking about telecom operators’ demand for revenue share with the over-the-top (OTT) communication apps — like WhatsApp, Google Meet, Zoom etc — the minister said that he has set up an advisory committee, and interaction has just started.
“Certainly, we will hear their views, and I guess regulator Trai will certainly take a view on that, and they have circulated a paper on that.”
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