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LEOs and the digital divide: Can this truss bridge hold?

India’s digital divide demands affordable, inclusive solutions. LEO satellites offer promise, but cost, access, and integration hurdles persist.

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Voice&Data Bureau
New Update
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The Cambridge Dictionary explains the adjective ‘Yawning’ as something that describes a difference or amount that is extremely large and difficult to reduce. That should explain why the ‘digital divide’ is, so often, and so aptly, called a ‘yawning gap’.

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But maybe there is more to it. It is also a boring gap to go after that makes you yawn. After all, why should it matter if some people stay in the ‘digital dark’? As long as our metro cities, deep-pocketed urbanites and smartphone-wielding teenagers are plugged in, everything is “ka-Ching”.

Commercial space giants like Starlink, Amazon, OneWeb, and entities such as the European Union are investing billions in LEO satellite systems.

Well, not exactly.

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According to the ICRIER State of India Digital Economy Report 2024, India is the third-most digitalised country in the world, behind the US and China but ahead of the UK, Germany, and Japan. Yet, the report’s framework has unravelled that even if India may be vastly digitalised, the average user is not. India ranks 12th among the G20 countries in terms of the level of digitalisation of the user.

It is not a well-lit map of digitalisation when many regions in India, especially rural ones, are still in the shadows. These lights-out regions dim a lot of our thunder of being a nation that boasts of having one of the world’s top Internet user bases. The country is missing out on seeing much of all the market potential, all the factories, the entrepreneurs, the productivity, the GDP, and the spirit of equality, just because this divide stays like a black void.

India and the Digital Divide Valley

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India has made significant strides in producing emerging technologies such as Artificial Intelligence (AI). However, the country is still stuck on lower rungs when it comes to adopting older basic technologies like broadband and the Internet. The rural-urban digital divide remains stark at 58%, significantly higher than the global average of 49%.

LT GEN AK BHATT

“India’s regulatory framework is evolving, and TRAI is working diligently to mitigate the delayed spectrum assignment because of spectrum pricing.”- LT GEN AK BHATT (RETD), Director General, Indian Space Association (ISpA)

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This duality is evident in the country’s technological landscape. On the one hand, India boasts impressive statistics, including an average wireless data usage per subscriber of 18.39 GB per month as of 30 June 2023, 1.3 billion biometric IDs as of January 2024, and 117 billion digital transactions valued at Rs 182 trillion in 2023. On the other hand, India ranked 60th in the 2023 Network Readiness Index (NRI), and the quality of its fixed-line Internet services falls short compared to other G20 nations.

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Despite a national target to roll out 1.2 million telecom towers in 2023–24, data from the Digital Infrastructure Providers Association (DIPA) reveals that only 739,000 telecom towers have been deployed. Furthermore, media reports highlight that 65% of the existing telecom towers require fibreisation, underscoring the challenge of deploying the additional towers needed to make India 5G-ready.

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LEOs: The Digital Flyover India Needs?

Low Earth Orbit (LEO) satellites, orbiting at altitudes of 1,200 miles or less, are emerging as a promising solution to the challenges of traditional cable and fibre networks. These satellites, positioned closer to Earth and constantly revolving, address limitations of reach, scale, cost, and speed. It is no surprise that commercial space giants like Starlink, Amazon, and OneWeb, as well as entities such as the European Union, are investing billions in LEO satellite systems. Additionally, initiatives like the World Economic Forum’s Edison Alliance are exploring their potential.

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SYLWIA1 Photograph: (SYLWIA1)
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“LEO satellites can deliver high-speed Internet with lower latency than traditional GEO or MEO satellites, enabling greater digital inclusion.”- SYLWIA KECHICHE, Senior Director, Industry Analysis, Opensignal

Agnivesh Tripathy, Senior Analyst at Everest Group, highlights the transformative potential of LEO networks. Can LEO networks help bridge connectivity issues and the digital divide in regions like India?

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“LEO networks have significant potential to bridge the digital divide in India’s remote and underserved regions by eliminating the need for intensive ground infrastructure investments across diverse terrains and accelerating rollout timelines. Beyond consumer connectivity, LEO networks support use cases such as surveillance, disaster response, and industrial IoT.”

The promise of LEO networks is particularly compelling in the Indian context. Sylwia Kechiche, Senior Director of Industry Analysis at Opensignal, underscores this potential. “LEO networks hold significant potential for bridging connectivity gaps in India, particularly in rural and remote areas where terrestrial networks face deployment challenges. By complementing existing infrastructure, LEO satellites can deliver high-speed Internet with lower latency compared to traditional geostationary (GEO) or medium-earth orbit (MEO) satellites, enabling greater digital inclusion.”

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“LEO satellites operate with shared capacity, and despite advancements, the physical laws governing our planet also apply to these technologies.”- PETRUS POTGIETER, Associated Partner, Strand Consult

Lt Gen AK Bhatt (Retd.), Director General of the Indian Space Association (ISpA) emphasises the opportunities LEO satellites present for bridging India’s digital divide, particularly in remote and unconnected areas where terrestrial infrastructure is challenging to deploy.

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“With the new Telecommunications Act 2023 and the clarity over administrative allocation of satellite spectrum, companies like OneWeb—now merged with Eutelsat—and Jio-SES have received necessary licenses and are awaiting spectrum allocation for LEO satellite broadband services. Companies like Starlink have also applied for necessary licenses and shown interest in the Indian market. Similarly, Amazon Kuiper, with its LEO constellation, intends to enter the Indian market. LEO satellites can provide high-speed, low-latency broadband even in geographically difficult terrain like mountainous regions and islands.”

Saurabh Rai, CEO of Arahas Technologies, stresses the importance of LEO satellites in achieving India’s vision for Viksit Bharat (Developed India) by 2047. “India’s vision hinges on equitable digital access for every citizen, regardless of geography. LEO satellites can address this in difficult terrains like the Northeast, Himalayan regions, and islands. Integrating LEO technology with initiatives like BharatNet and Digital India can ensure that no village or gram panchayat is left behind.”

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“Given India’s geopolitical sensitivities, satellite connectivity and inter-satellite communication must be strictly regulated to mitigate potential threats.”- AGNIVESH TRIPATHY, Senior Analyst, Everest Group

Ankit Kumar, CEO of Skye Air, highlights the role LEO networks can play in a country where over 65% of the population resides in rural areas. “LEO networks could serve as the digital backbone, driving advancements in Internet accessibility, digital inclusion, education, and e-commerce. Pioneering efforts by global players like OneWeb and Starlink, alongside Indian ventures, are already underway, with pilot initiatives demonstrating their feasibility in parts of the country.”

Vikram Puranik, Senior Vice President of Engineering and Head of the Consumer, Communications, and Media vertical at GlobalLogic – India and APAC, notes how LEO satellites’ ease of deployment could enable connectivity in remote village schools, government panchayat offices, agricultural and farm activities. “A unique dimension is the potential for IT professionals and urban white-collar workers to operate from rural areas, thus providing a stimulus to the rural economy.”

For companies like Skye Air, LEO networks are more than complementary technology; they are critical logistical enablers. Kumar elaborates, “LEO satellite networks provide reliable connectivity that ensures seamless communication, navigation, and operations for drones, even in regions devoid of cellular coverage. This capability is invaluable for healthcare and emergency delivery missions in remote or disaster-stricken areas.”

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VIKRAM1 Photograph: (VIKRAM1)

“LEO satellites’ ease of deployment could enable connectivity in remote village schools, government panchayat offices, agricultural and farm activities.”- VIKRAM PURANIK, VP – Engineering & Head – Consumer, Communications, and Media, GlobalLogic

It is interesting to see how India’s regulatory landscape is evolving to accommodate the possibilities offered by satellite broadband. A notable recent development is the Indian government’s decision to allocate spectrum for satellite broadband without auctioning it, which, Kechiche reasons, paves the way for providers like Elon Musk’s Starlink to bring their services to India.

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Rai adds that the government’s Indian National Space Promotion and Authorization Centre (IN-SPACe) initiative has been a game-changer, opening the space sector to private players. “Programs such as OneWeb’s partnerships with Indian stakeholders and ISRO’s active role in launching satellites demonstrate India’s growing capabilities in satellite communications.”

A Torch Where Floodlights Are Needed

Despite the optimism surrounding them, LEO satellites do not float so easily. They face significant challenges and unanswered questions.

Petrus Potgieter, an Associated Partner with Strand Consult, tempers the hype with critical observations. “Many view LEO satellites as the key to providing mobile coverage and broadband for the unconnected, with much excitement around initiatives like Starlink. Starlink has built a global network with plans for over 6,000 satellites, though only 2,000 have been deployed so far, often without access to the necessary spectrum for ground-based services. LEO satellites are an exciting technology and a strong supplement to existing networks, but not a standalone solution.”

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ANKIT1 Photograph: (ANKIT1)

“LEO networks provide reliable connectivity for seamless communication, navigation, and operation for drones, even in regions with no cellular coverage.”- ANKIT KUMAR, CEO, Skye Air

Potgieter emphasises that LEO satellites do not replace mobile networks or negate the need to expand terrestrial digital infrastructure, especially in regions like India and Africa, which still have hundreds of millions of unconnected individuals. “These satellites operate with shared capacity, and despite advancements, the physical laws governing our planet also apply to these technologies.”

Affordability is another key hurdle for LEO networks, especially in India, points out Kechiche. “The high cost of LEO services and equipment will limit adoption in price-sensitive regions, posing a significant barrier to widespread usage.”

While LEO networks promise stable, fast, and low-latency connectivity, cost and security pose significant obstacles, notes Tripathy. “Currently, services like Starlink are prohibitively expensive for India’s price-sensitive market, with plans costing approximately ten times more than those of Jio or Airtel. This pricing restricts adoption in sparsely populated areas, limiting monetisation potential to industries and government institutions.”

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“Integrating LEO satellite technology with initiatives like BharatNet and Digital India can ensure that no village or gram panchayat in India is left behind.”- SAURABH RAI, CEO, Arahas Technologies

There is also the security front to worry about. Tripathy weighs in on how the mobility of LEO satellites and the interest of foreign firms in the Indian market necessitate stronger international cooperation and governance to prevent misuse or weaponisation of satellite constellations. “Additionally, given India’s geopolitical sensitivities, direct satellite connectivity and inter-satellite communication must be strictly regulated to mitigate potential threats.”

Rai also echoes these concerns. “To unlock LEO’s full potential for Viksit Bharat, India needs targeted policy reforms, increased public-private collaborations, and cost-effective solutions tailored to Indian needs. By leveraging initiatives like IN-SPACe to encourage innovation, India can balance terrestrial networks with satellite connectivity to bridge the digital divide and empower every Indian citizen.”

The government of India recognises the potential of LEO technology and is working with providers to address security concerns and spectrum allocations, says Puranik. “The recent announcement that spectrum for certain satellite-based communication services will be assigned administratively, rather than through auctions, should expedite the launch of these services.”

Kumar adds that India may also need to consider harmonising these systems within existing regulatory frameworks. “Rather than competing, LEO networks and drones function as synergistic technologies. While LEO satellites provide global, high-speed connectivity, drones excel in last-mile logistics, especially in regions with inadequate physical infrastructure.”

Bhatt acknowledges that the regulatory framework around satellite communications is still evolving for LEO constellations in India. “TRAI is working diligently to address the delayed spectrum assignment caused by pricing issues. Other challenges include the high cost of user terminals and ground equipment compared to traditional broadband, the need for significant ground infrastructure such as gateway stations, and concerns over long-term sustainability and space debris. The technology holds promise but requires a balanced approach to ensure commercial viability and affordable access for effectively bridging the digital divide.”

Potgieter adds that LEO satellites are particularly effective as backhaul solutions in remote areas or during emergencies. “The technology is valuable in areas where infrastructure building is either expensive or impossible or population density is low. However, it is not a substitute for a competitive mobile and fixed broadband industry—it is a complement to it and one that is readily available today.”

LEO satellites cannot replace mobile networks or negate the need to expand terrestrial digital infrastructure, especially in regions like India and Africa.

As Kechiche points out, satellite technology is not the only option for connecting rural areas. “Fixed Wireless Access (FWA) is gaining traction as a complementary solution. It offers a quicker and more economical deployment option in areas where laying fibre optics is impractical. Recent Opensignal analysis of Jio’s FWA performance highlights that its Consistent Quality scores are closely aligned with its mobile services throughout the day, demonstrating its viability as a reliable broadband alternative.”

Let Us Define the Digital Divide

Geographical coverage, last-mile access, and bridging the rural-urban divide are commendable goals, and while significant progress has been made, much remains to be achieved. Data from the Ministry of Communications on Universal Connectivity and Digital India initiatives (2014–2024) highlights these strides. For instance, the definition of broadband has evolved from speeds above 512 Kbps to above 2 Mbps over the last decade. India’s global ranking in average Internet download speed has improved dramatically, rising 114 positions from 130 in 2014 to 16 in 2024, with an impressive 2432.39% increase in average download speeds.

As of March 2024, India boasts over 950 million Internet subscribers, an urban teledensity of 133.72%, and a rural teledensity of 59.19%—a significant jump from the 43.96% rural teledensity in 2014. Additionally, average data consumption has skyrocketed by 7696% between 2014 and 2024, while the average cost per GB of data has plummeted by 96.58%, now as low as Rs 9.18 in March 224. These figures showcase India’s remarkable progress in digital connectivity. If LEO satellites can further scale this growth without causing a corresponding spike in costs, India’s digital infrastructure could reach new heights, quite literally.

Yet, the digital divide extends beyond just physical access to connectivity. Issues such as gender disparity, digital literacy, and affordability present additional challenges. A report by Kantar-IMRB previously highlighted a significant gap in digital literacy between men (44.8%) and women (37%). Moreover, the unconnected population in India largely includes older adults, people with disabilities, women, and children.

While LEO satellites excel at addressing the ‘low-hanging fruit’ of physical reach, the broader challenge lies in addressing deeper divides. Bridging affordability, literacy, and inclusion gaps is critical for creating truly equitable digital infrastructure. The real test for LEOs will be whether they can extend their impact beyond physical reach and close the metaphorical “yawn” in the digital divide.

By Pratima H

pratimah@cybermedia.co.in

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