Eutelsat OneWeb, a prominent global satellite communications company, is gearing up to capture the business-to-business (B2B) space in India, marking a significant move in the satellite broadband sector. Having secured necessary approvals from the government of India and regulatory authorities, Eutelsat OneWeb presented its solutions exclusively for enterprises at the India Mobile Congress (IMC) 2023. With distribution support from Airtel, this strategic move aims to address geographical coverage gaps in the country, with a focus on businesses rather than consumers.
Airtel’s Crucial Role in Distribution
Airtel, one of the largest telecom operators in India and part of the Bharti Group, is set to play a major role in the distribution of Eutelsat OneWeb’s B2B services. Leveraging its extensive experience and established relationships with enterprises, Airtel is poised to facilitate the seamless integration of Eutelsat OneWeb’s satellite communication solutions into the Indian market.
Targeting Geographic Coverage Gaps
A senior Airtel executive highlighted that while the majority of India’s population enjoys mobile network coverage, there exists a substantial gap in geographical coverage. Eutelsat OneWeb aims to tap into this untapped market segment, offering satellite broadband services that cater specifically to the B2B sector. This strategic move positions Eutelsat OneWeb as a key player in addressing connectivity challenges in remote and underserved areas.
Competition on the Horizon
Eutelsat OneWeb faces formidable competition from Jio Satellite Communications Limited, owned by Reliance Industries’ Ambani. At the IMC 2023, Jio showcased JioSpaceFiber, a satellite communication solution also geared towards enterprises. Both companies have regulatory approvals for the Indian market, awaiting spectrum allocation from the government. Unlike competitors like Starlink, neither Eutelsat OneWeb nor Jio Satellite Communications Limited is currently targeting direct-to-consumer satellite services, citing the high cost of consumer premises equipment (CPE) as a potential barrier in the Indian market.
The Challenge of Consumer Affordability
Despite the potential of satellite broadband services, challenges persist in making them affordable for consumers. The high cost of CPE and monthly plans, even with subsidies, raises concerns about feasibility in the Indian market. While Starlink’s international pricing may not align with Indian consumer expectations, the question remains whether Jio or Airtel can innovate and overcome these challenges in the evolving satellite communications landscape.
