Satellite Communications Offer New Opportunities to Connect Unconnected Areas, Says Sunil Mittal

Bharti Group Chairman Sunil Mittal emphasised the potential of satellite communications to connect remote areas. Speaking at the NDTV World Summit, he highlighted that about two billion people globally remain offline. In India, vast regions like deserts and forests lack mobile or fibre connectivity. Mittal believes satellite technology offers a promising solution for telecom operators to reach these underserved locations.

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Mittal pointed out that 5% of India's population lacks internet access, residing in 25% of the country's area. He stressed that satellite is the only viable option for these regions. Despite India providing high-quality signals to most of its population, this small percentage remains disconnected due to their remote locations.

Satellite Connectivity and Infrastructure

Mittal revealed that ground stations in Mehsana, Gujarat, and Pondicherry are ready to commence services. "The day government gives us the permission, there will not be a single square inch of this country which will not have radio coverage," he stated. This readiness underscores the potential for widespread satellite coverage across India.

The discussion on satellite spectrum allocation is heating up among industry giants like Elon Musk, Mukesh Ambani, and Mittal. While Reliance Jio advocates for auctioning spectrum to ensure fairness, Mittal supports satellite companies purchasing spectrum if they have urban ambitions. Meanwhile, Starlink seeks administrative allocation in line with global practices.

Manufacturing and Investment Trends

Mittal also discussed India's manufacturing sector, noting the positive impact of the PLI production incentive. This initiative encourages companies to manufacture trusted products domestically. Bharti Airtel is investing heavily in digital infrastructure annually, reflecting a broader trend across various industries like cement and steel.

He highlighted challenges telecom companies face in setting up towers in certain areas, such as Lutyens Delhi. Local authorities need to be more aware of these issues. Additionally, Mittal noted that Indian mobile tariffs are significantly lower than those in the US and Europe, though they lag behind countries like Japan and Singapore.

Tariff Adjustments and Economic Considerations

Mittal believes average revenue per user (ARPU) should increase from USD 2.5 to USD 5 over time. This adjustment would support further investment in infrastructure and spectrum acquisition. He praised India's digital public infrastructure as a valuable asset that could benefit other developing nations.

He argued that raising tariffs slightly would help build world-class networks similar to those in Japan and Singapore. Current ARPUs are below 2016 levels, and inflation has increased operational costs. "We have not even caught up with the inflation...We have been going back in our tariffs," he remarked.

Mittal's insights underscore the importance of satellite technology in bridging connectivity gaps while highlighting economic factors influencing India's telecom sector. His comments reflect ongoing debates about spectrum allocation and investment strategies needed to enhance digital infrastructure nationwide.