Former Niti Aayog Vice Chairman Rajiv Kumar has proposed utilizing the USD 145 billion Universal Service Obligation fund to help domestic private telecom operators compete with Starlink. This suggestion surfaces as India navigates the complex regulatory and security vetting process for satellite internet providers, involving major players like Reliance Jio and Bharti Airtel.
Former Niti Aayog Vice Chairman Rajiv Kumar has called for the Indian government to deploy the USD 145 billion Universal Service Obligation (USO) fund to support domestic private telecom companies in building space-based communication networks. The proposal aims to foster a stronger competitive environment against global satellite internet providers, specifically targeting Elon Musk’s Starlink.
The suggestion centers on pivoting financial support toward private sector giants like Bharti Airtel and Reliance Jio. Kumar argues that by incentivizing these established networks to accelerate satellite infrastructure deployment, India could field a strong domestic alternative, reducing reliance on state-owned providers and foreign entities. The USO fund, historically designed to improve rural connectivity, is positioned here as a tool for digital infrastructure development in the satellite era.
This policy debate occurs against a backdrop of public friction. Recently, concerns were raised regarding potential entry barriers for foreign satellite players. However, the Ministry of Communications has officially clarified that the regulatory and security assessment process remains uniform for all applicants. Currently, three major entities—Starlink, Jio Satellite Communications, and Eutelsat OneWeb—are moving through the standard process for licenses and security clearances required for spectrum assignment.
For investors, the development highlights the evolving landscape of India's satellite broadband sector. Both Bharti Airtel and Reliance Jio already hold Global Mobile Personal Communications by Satellite (GMPCS) licenses, which are essential prerequisites for operating satellite internet services in the country. The push for domestic satellite capability is part of a broader shift toward ensuring technological sovereignty and securing high-speed connectivity in hard-to-reach geographical areas.
However, the sector faces material risks that require close monitoring. Satellite internet deployment is subject to stringent security requirements and data protection assessments, which can lead to prolonged approval timelines. Furthermore, the allocation of spectrum remains a sensitive regulatory issue. Any delay in establishing clear guidelines for spectrum usage or security vetting could affect the commercial rollout timelines for all players, including the domestic incumbents that the proposal seeks to support.
The competitive landscape is also expected to evolve significantly as these services move toward commercial availability. While satellite internet offers a pathway to reach remote regions, its impact on the existing business models of telecom operators—specifically in terms of Average Revenue Per User (ARPU) and capital spending for infrastructure—remains a factor to watch. Market participants will likely track upcoming government updates on spectrum allocation and final security clearances, as these will determine the operational speed and financial viability of satellite broadband for all stakeholders involved.