How Satellite Internet Can Bridge India’s Digital Divide and Expand Its Strategic Heft

Recent events in India highlight the growing prevalence of satellite-based internet technologies. In the Northeast state of Manipur, Indian security forces recovered a Starlink dish and router with weapons during a raid. This is not an isolated occurrence; another Starlink device was recently found in a drug-bust off the Andaman coast. Authorities suspect that these devices were smuggled in from Myanmar, where Starlink is reportedly active despite lacking regulatory approval. It is likely being used to circumvent government-imposed internet restrictions there. These incidents highlight the potential as well as the penetration of space-based technologies like satellite internet. 

Massive Potential  

Satellite internet provides a global alternative to the traditional internet infrastructure. While traditional internet services rely on localised terrestrial infrastructure and are easier to monitor and disrupt, satellite internet provides coverage from space, reaching remote areas where difficult terrain or sparse populations make terrestrial networks impractical.

The demand for high-speed internet connectivity has surged worldwide, driven by increasing smartphone use and the growth of digital services. Streaming platforms, cloud services, and video conferencing have become essential tools in modern life. In areas with poor terrestrial coverage, users are willing to adopt satellite internet despite higher costs. As the technology matures and competition increases among providers, falling prices are expected to further accelerate adoption rates worldwide.

The global satellite internet market was valued between $5.33bn and $9.24bn in 2023. It is projected to reach $29.7-37.64bn by 2034. SpaceX's Starlink exemplifies this rapid growth, operating 6,800 low-Earth orbit (LEO) satellites and serving over 4mn subscribers across more than 100 countries. 

The military significance of satellite internet became evident during the Russia-Ukraine war. Starlink rapidly deployed its services over Ukraine, enabling soldiers to maintain critical communications when ground networks failed. The system proved robust enough to transmit real-time drone footage between troops. Overall, Starlink service proved to be a lifeline for civilians and defence forces alike. 

Recognising satellite internet's strategic importance, China is developing two satellite internet mega-constellations of its own, the Guowang and Qianfan. Recently, China launched the first batch of LEO satellites under the Guowang program. Meanwhile, Qianfan (Thousand Sails) has seen multiple launches in 2024 and has 54 satellites currently in orbit.

Both constellations aim to provide global satellite internet coverage. These systems could serve as a dual-use platform for both civilian and military purposes, with potentially negative implications for India. 

Where Does India Stand?    

India has yet to operationalise any domestic satellite internet service. While companies like Jio Satellite Communications and OneWeb have received licences to provide satellite internet services, their rollout remains constrained by regulatory hurdles and spectrum allocation issues. Meanwhile, foreign players like Starlink and Amazon await approval to enter the Indian market.  

This lack of satellite internet infrastructure puts India at a significant disadvantage, particularly in remote regions like Ladakh, Arunachal Pradesh and the Andaman Islands—areas critical for border security—which continue to suffer from poor connectivity. A delayed regulatory process or lack thereof not only denies these technologies to legitimate users but may also enable their misuse. For instance, during the recent drug bust near the Andaman Islands, smugglers used a Starlink device to navigate while trafficking 6 tonnes of narcotic drugs worth over $4bn.

India's approach to satellite internet needs to be both immediate and long-term. In the short term, India should streamline regulatory clearances along with the necessary safeguards for trusted satellite internet providers, both domestic and international. These measures would protect national interests while enabling rapid deployment of satellite internet services.

Benefits Beyond Borders

The benefits of immediate satellite internet access would be far-reaching. Remote areas would gain reliable internet connectivity, bridging the digital divide that has hampered rural development. This improved connectivity would enhance education, healthcare delivery, and economic opportunities in previously underserved regions. For security forces operating in remote areas, reliable satellite internet would transform their operational capabilities, enabling real-time intelligence sharing, improved coordination and better situational awareness.

For the longer term, India should create an ecosystem that fosters the development of constellations by local players. This would entail a favourable policy regime with an independent regulatory framework, access to necessary infrastructure like spaceports and testing facilities and a sustained demand coming from the government as an anchor customer. 

Indian satellite internet systems would serve multiple strategic objectives. Beyond reducing dependence on foreign providers, it would give India a powerful tool for regional influence. These constellations could offer its satellite internet services to south and southeast Asian countries, providing a trusted alternative to Chinese systems in the Indo-Pacific region. It could prove timely in the case of natural disasters and rescue operations. This would strengthen India's position as a responsible space power and reliable regional partner.

These systems could also be designed with specific military applications in mind, ensuring secure communications for defence forces during critical operations. Features like encrypted channels, jamming resistance and rapid reconfigurability could be encouraged from the start.

To support these initiatives, India must actively shape international space policy. As a major space-faring nation, India should lead efforts to strengthen space governance. This includes addressing crucial issues like space debris management and orbital slot allocation. By taking a proactive role in these discussions, India can help ensure that the growing use of satellite internet systems remains sustainable and serves global interests. These efforts would position India not just as a user of satellite internet technology, but as a key player in shaping its future development and deployment around the world.

Rakshith Shetty is a research analyst with the Indo-Pacific Studies Programme at the Takshashila Institution while Ashwin Prasad works with its High-Tech Geopolitics Programme. Views expressed are personal.