Rural connectivity remains a major challenge in India, with millions still lacking reliable mobile broadband access. Bharti Airtel Chairman Sunil Mittal CEO of Telcos has urged governments and regulators to incentivize telecom operators to expand coverage in underserved areas by partnering with satellite communication (Satcom) providers. Speaking at the Mobile World Congress (MWC) 2025, he emphasized that collaboration, rather than excessive competition, is key to bridging digital divides.
Mittal criticized the duplication of infrastructure, advocating for fair satellite spectrum allocation and lower taxes to ease the financial burden on telecom companies. He highlighted that the industry bears the responsibility of building digital infrastructure but struggles with low returns on investment. He also pointed out that most telecom players focus on lucrative urban markets while rural areas remain neglected. The solution, he insisted, lies in strategic partnerships between telecom companies and Satcom firms.
With India’s digital transformation accelerating, ensuring last-mile connectivity is critical. Industry experts agree that Satcom technology can complement terrestrial networks, providing seamless coverage even in remote locations. The collaboration between telcos and Satcom players will drive economic inclusion, improve access to essential services, and foster innovation in connectivity solutions.
1. Understanding Telcos and Their Business Model
Telecom companies (telcos) operate on a model that primarily revolves around providing communication services such as voice calls, messaging, and data connectivity. Their revenue model includes subscription fees, prepaid and postpaid plans, enterprise solutions, and value-added services like cloud computing and Internet of Things (IoT) applications.
Funding in the telecom sector comes from multiple sources, including venture capital, government subsidies, and private investments. Bharti Airtel, one of India’s leading telecom companies, has raised capital through a mix of equity and debt financing. Its business spans mobile and broadband services, digital platforms, and enterprise solutions.
2. The Current State of Rural Connectivity
India has made significant progress in telecom penetration, but rural connectivity still lags. More than 400 million people lack reliable internet access, particularly in remote regions where building fiber-optic infrastructure is costly and challenging. While urban centers enjoy high-speed networks, rural areas suffer from poor signal strength, network congestion, and lack of affordable internet plans.
Despite government initiatives like BharatNet, which aims to connect villages with high-speed broadband, execution challenges persist. Many villages still lack proper telecom infrastructure, making it difficult for businesses, students, and healthcare providers to access essential digital services.
3. Why Telcos and Satcom Players Need to Collaborate
3.1 Bridging Infrastructure Gaps
Satellite communication can complement terrestrial networks by providing coverage in areas where traditional telecom infrastructure is unfeasible. Unlike fiber-optic cables, satellites can deliver connectivity across vast terrains, ensuring last-mile coverage.
3.2 Cost-Effective Expansion
Building mobile towers in remote areas involves high capital expenditure and maintenance costs. Satellite solutions provide a cost-effective alternative, allowing telecom operators to extend their services without excessive investments.
3.3 Faster Deployment
Deploying satellite-based internet services is much quicker than laying fiber-optic networks. This ensures immediate connectivity for areas affected by natural disasters or regions with no existing telecom infrastructure.
3.3 Improved Service Quality
With satellite support, telcos can reduce network congestion and enhance service quality in both urban and rural areas. This is particularly crucial for applications requiring uninterrupted connectivity, such as telemedicine and online education.
5. Challenges in Telco-Satcom Partnerships
5.1 Regulatory Hurdles
The Indian telecom sector is heavily regulated, and spectrum allocation policies remain a contentious issue. Mittal has urged the government to establish clear guidelines for satellite spectrum allocation, ensuring fair competition between telecom and Satcom players.
5.2 High Costs of Satellite Technology
While satellite communication offers significant benefits, its operational costs remain high. Satellite launches, maintenance, and spectrum licensing require substantial investment, which could affect affordability for consumers.
5.3 Need for Industry-Wide Collaboration
For Satcom integration to be successful, telecom operators, regulators, and satellite firms must work together. Standardization of technology, shared infrastructure models, and joint investment strategies are crucial for seamless implementation.
6. The Future of Rural Connectivity in India
Industry analysts predict that hybrid networks, combining terrestrial and satellite connectivity, will dominate the future of telecom services. Initiatives like OneWeb, in which Bharti Group has a significant stake, aim to provide global satellite broadband coverage. Similarly, collaborations between telcos and space-tech firms will play a pivotal role in ensuring comprehensive connectivity.
As 5G deployment gains traction in urban areas, rural connectivity must not be left behind. Emerging technologies like Low Earth Orbit (LEO) satellites and High-Altitude Platform Stations (HAPS) could revolutionize how telecom services reach remote locations.
7. Learning for Startups and Entrepreneurs
- Leverage Satellite Technology – Entrepreneurs in the telecom and space-tech sectors should explore innovative satellite-based communication solutions.
- Identify Market Gaps – The rural connectivity challenge presents a massive opportunity for startups focusing on last-mile internet solutions.
- Collaborate with Established Players – Partnering with telecom giants can provide startups with access to infrastructure, funding, and regulatory expertise.
- Focus on Affordability – Affordable internet solutions will drive higher adoption rates in rural areas, ensuring long-term business sustainability.
- Stay Updated with Regulatory Changes – Understanding government policies and spectrum allocation rules is crucial for telecom-related ventures.
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