Airtel-Starlink Deal: Former CEO Flags Regulatory Hurdle

Telecom regulations in India are strict and regulatory bodies should clear approvals faster to allow connectivity in underserved areas, according to former Bharti Airtel Chief Executive Officer Sanjay Kapoor.

"If you want to serve the unserved by complementing terrestial service providers, then approvals should be sooner than later," he told NDTV Profit, responding to the regulatory hurdle the new Airtel-Starlink partnership may face.

Airtel will use Starlink's low-earth orbit satellite connectivity, in addition to its existing partnership with OneWeb, to extend its nationwide coverage and connect areas that previously had limited access.

The final clearances and license authorisations for both alliances are in the works and Airtel will pitch for administrative allocation of satellite spectrum, people in the know told NDTV Profit on the condition of anonymity.

Services from satellite service providers like Starlink and OneWeb will complement terrestrial services and not substitute them, Kapoor said.

"Airtel is agnostic as a telecom services provider concerning technology. Whether it's Starlink or OneWeb, the jury is still out," he said.

Noting that affordability in India for higher-priced data plans is low, the telecom veteran said Airtel will probably focus on the B2B segment in remote areas.

"Such areas are uncovered because of viability, commercial returns or terrain challenge. We'll have to see whether more expensive services going out is taken by customers or not. Airtel will focus on B2B services, which is sensible," he said.

For now, the consumer experience will determine where the Airtel-Starlink partnership will go, Kapoor said.

"Satellite internet service providers won't survive in a walled garden. They will collaborate with everybody. Though Airtel is number two, it is the one who takes the first steps," he said.