Union Telecom Minister Jyotiraditya Scindia on Tuesday said Elon Musk-owned Starlink is yet to comply with security norms, and a license for satellite communications services will be issued only after they meet all the requirements for services in India.
The satellite communication services major is in the process of completing all the requirements and will get a license once they complete the process, the minister added.
"We are more than happy to give them (licence) if they (Starlink) comply with all the conditions. You have to look at it from a security perspective, making sure that all security concerns are addressed. When they do that we will be more than happy to give it. Obviously, they are in the process of doing it," Scindia told reporters.
In the process, he answered a question related to the status of the licence for Starlink.
The only two licenses issued to date have been to Bharti Group-backed OneWeb and the Jio-SES joint venture called Jio Satellite Communications. However, the two companies have not yet rolled out their services as they are awaiting allocation of spectrum in which pricing and rules are currently under process.
Sources also say that the Telecom Regulatory Authority of India, Trai, is supposed to finalize its recommendation on proposed rules related to spectrum allocation for satellite communications by December 15.
The government, once it examines these recommendations, will then decide upon spectrum allocation to satellite communication companies, which will open up satellite-based broadband services in the country.
When asked about the status of the Rs 24,700 crore bank guarantee waiver sought by Vodafone Idea, the minister said that any decision of the government would not be company-specific even though it will have an impact on the entire sector.
"We have four players in the market as I am speaking, which is also very much required from the sectoral point of view. To say that India probably has the highest number of national telecom players compared to any other country. Bank guarantee waivers have already been done post-2022 auction. Any decision the government takes will be company-specific. It will be a sectoral step," Scindia said.
DoT has asked the telco to furnish bank guarantees as a guarantee of spectrum payment to the tune of Rs 24,747 crore. As per norms, bank guarantees are to be furnished at least a year before the payment is due.
Sources mention that the DoT has written to the finance ministry about exempting telcos from providing bank guarantees towards spectrum payment dues. VIL has appealed seeking relief under spectrum auction rules 2022 and 2024 as the requirement of providing bank guarantees for annual instalments has been removed. It has already wiped out almost Rs 16,000 crore interest liability on the deferment of payment and provided the government equities in the company. The government holds an equity stake of around 23 per cent in VIL.
The telecom sector itself, the minister said, has received tremendous impetus in the last two and half years.
"All the support that has been provided from a sectoral point of view, except in the case of BSNL. For the first time in Indian history and from a global perspective, we have a company that has come up with its own indigenous stack of 4G. We are the sixth country in the world that can do that," Scindia said.
He said support to 1 lakh mobile tower of BSNL is likely to be rolled out on a 4G system by May-June next year and some of the sites will switch to indigenously developed 5G by mid-2023.
"With this, not only is India leading in terms of services but also in terms of technology. For the first time, India's voice is being heard extremely loudly within ITU (International Telecommunications Union). Many of our technology papers like 5Gi have also been accepted at ITU. With 5G, we have made our presence felt. With 6G, we will have a tremendous presence," Scindia said.
Referring to the question on MTNL, the minister said there was no insecurity about the debt raised by the loss-making public sector telecom as it carries a sovereign guarantee. And he said that the business of the company would be transferred to BSNL.
Speaking about telecom operators' demand for revenue share with the over-the-top (OTT) communication apps -- like WhatsApp, Google Meet, Zoom etc -- the minister said that he has set up an advisory committee, and interaction has just started.
"Yes, of course, we will hear their views, and I guess regulator Trai will certainly take a view on that, and they have circulated a paper on that," he added.
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