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The head of one of Europe’s largest satellite manufacturers, France-based Thales, has highlighted the risks to governments of relying too heavily on private satellite constellations in an apparent warning over Elon Musk’s Starlink.

Speaking at a results briefing on Tuesday, Thales CEO Patrice Caine questioned the business model of Starlink, which he said involved frequent renewal of satellites and question marks over profitability.

Without further naming Starlink, he went on to describe risks of relying on outside services for government links.

“Government actors need reliability, visibility and stability,” Caine told reporters.

“A player that – as we have seen from time to time – mixes up economic rationale and political motivation is not the kind that would reassure certain clients.”

SpaceX, Musk’s space launch company that also owns Starlink, did not immediately respond to a request for comment.

Starlink, with millions of customers globally and more than 7,000 satellites, has been sold as a secure means of accessing the internet, resilient to space-based attacks by the sheer number of replaceable satellites that make up the constellation.

SpaceX says it sees growing global demand for Starlink, as it expands a 1 million square-foot (92,903 sq m), heavily automated Starlink terminal manufacturing site in Texas that produces 15,000 terminals a day.

SpaceX has captured key markets for Starlink after using its reusable Falcon 9 rockets to deploy satellites far quicker than rivals, such as Europe’s OneWeb.

In the early days of the Ukraine war, Starlink’s security was stress-tested by a barrage of unsuccessful Russian hacking attempts that crippled rival Viasat.

In 2023, Musk said he had refused a Ukrainian request to activate the Starlink satellite network in Crimea’s port city of Sevastopol the previous year to aid an attack on Russia’s fleet there, saying he feared complicity in a “major” act of war.

Last month, Musk denied a Reuters report that US negotiators pressing Kyiv for access to critical minerals had raised the possibility of cutting access to Starlink.

Caine said most European governments had backed systems based on commissioning assets more directly under their control, such as the future Iris2 constellation for secure networks.

“When you operate government communications you don’t necessarily want to be dependent on an external person, whoever that is. That is why…the vast majority of government infrastructure in Europe is owned or has been purchased,” he said.

“Other countries make other choices. They have private players invest and operate the services. It is very rare in Europe. (Positioning system) Galileo started like that and it didn’t work.”

Thales earlier reported continued losses in its own satellite business as it posted higher overall 2024 profits.

Caine said Starlink did not compete directly with Thales or its main European rival Airbus, Europe’s two major satellite producers, but had indirectly shaken up their markets by disrupting commercial telecom satellite operators. Reuters

The Non-Terrestrial Networks (NTN) and Direct-to-Cellular (D2C) market is entering a transformative phase in 2025, driven by strategic advancements from Apple, SpaceX, AST SpaceMobile, satellite operators, and mobile network operators (MNOs). ABI Research, a global technology intelligence firm, forecasts that the NTN-D2C segment will potentially reach US$25 billion in service revenues by 2035, with over 200 million connections.

“The D2C market is experiencing a seismic transformation, with industry leaders such as Apple, SpaceX, and AST SpaceMobile driving satellite-enabled connectivity into the consumer mainstream,” explains Victor Xu, Industry Analyst at ABI Research. “Apple’s strategic control of 85% of Globalstar’s network capacity is a groundbreaking move, enabling the company to deliver reliable satellite services while laying the foundation for more advanced satellite-based applications across its ecosystem of devices.”

Apple’s partnership with Globalstar, starting with a US$450 million investment in 2022 and an additional US$1.5 billion in 2024, has established Apple as a leader in consumer satellite services. Key features include Emergency SOS, Roadside Assistance, Messages, and Find My App for off-grid sharing. Looking ahead, Apple may introduce tiered satellite messaging and AirTag tracking subscriptions, potentially bundled with Apple One. This partnership aims to extend SatCom capabilities to iPads, Apple Watches, and MacBooks, expanding satellite technology’s reach into outdoor and rugged device markets. This strategic move could also lead to new ruggedized devices designed for extreme environments, aligning with Apple’s ecosystem-driven strategy and positioning the company in emerging markets for satellite-enabled consumer devices.

SpaceX has also emerged as a key player in the D2C space. It deployed over 330 D2C satellites in 2024, using eNodeB modems to enable direct LTE connectivity with smartphones. With partnerships across major MNOs, including T-Mobile, KDDI, Optus, Kyivstar, and Rogers, SpaceX is leading in satellite-to-phone connectivity globally. “SpaceX’s extensive MNO partnerships highlight the growing interest from traditional telecom providers in leveraging satellite solutions to extend their coverage footprint,” Xu notes.

AST SpaceMobile, like SpaceX, has formed partnerships with over 45 MNOs, including AT&T, Vodafone, and Telefónica, covering around 2.8 billion users. These alliances boost AST SpaceMobile’s global scalability. The growth of the D2C market is further supported by regulatory advancements like the FCC’s Supplemental Coverage from Space (SCS), enabling satellite operators to use terrestrial spectrum. Partnerships between satellite operators and MNOs, such as SpaceX, T-Mobile, and AST SpaceMobile, will benefit from SCS, allowing seamless satellite-terrestrial network integration and opening new consumer markets and revenue opportunities.

“As we look ahead to 2025 and beyond, the D2C market will continue to evolve,” Xu concludes. “From emergency services to logistics and adventure tourism, satellite-enabled applications are unlocking new possibilities for industries worldwide. This is just the beginning of a transformative era in global communications.” ABI Research

An internet rights group on Tuesday raised alarm over reports the United States may steer billions of dollars to Elon Musk’s Starlink by making changes to a rural broadband deployment program.

Net neutrality supporter Free Press spoke out after the Wall Street Journal reported that the Department of Commerce could set Musk up for a windfall by overhauling a $42.5 billion program established under former President Joe Biden to bring broadband internet service to rural parts of the country.

Commerce Secretary Howard Lutnick has told staff he plans to significantly increase the share of money available to satellite-internet providers such as Starlink rather than firms that use fiber-optic cables to deliver high-speed internet service, the Journal reported, citing people familiar with the situation.

Starlink is a unit of Musk’s SpaceX company.

Musk — the world’s wealthiest person and a top donor to Donald Trump’s 2024 campaign — has status as a “special government employee” and “senior adviser to the president.”

Trump put Musk in charge of the newly created Department of Government Efficiency that has been slashing the ranks of US agencies under the auspices of budget cutting.

“The Trump administration is undermining an essential bipartisan program designed to bring reliable and affordable broadband to tens of millions of Americans — and it’s doing so just to line Elon Musk’s already bulging pockets,” Free Press co-chief Craig Aaron said in a statement.

During the Biden administration, the Federal Communications Commission rejected Starlink’s application for nearly $900 million in subsidies on the grounds it failed to show it could meet service requirements, Free Press noted.

Fiber optic cables are considered faster and more reliable than satellites for broadband internet service.

Congress created the Broadband Equity, Access and Deployment Program as part of a 2021 infrastructure bill that Biden signed into law.

Proposals from every US state have been approved, but critics argue the program is moving too slowly. AFP

The Department of Telecommunications (DoT) has issued a strong caution against the misuse of telecom resources, warning individuals and entities against tampering or spoofing telecommunication identifiers such as mobile numbers, IP addresses, IMEI numbers and SMS headers.

The move comes as part of DoT’s ongoing efforts to curb cybercrime and financial fraud.

Stringent Penalties Under Telecommunications Act, 2023
With the enactment of the Telecommunications Act, 2023, the government has introduced stringent penalties for offenders engaged in telecom fraud. The Act criminalizes the unauthorized acquisition and misuse of Subscriber Identity Modules (SIM cards) and other telecom identifiers.

Section 42(3)(c) explicitly prohibits the tampering of telecommunication identifiers, while Section 42(3)(e) bars the procurement of telecom resources through fraud, impersonation, or deceit.

Violators of these provisions face severe consequences, including imprisonment of up to three years, fines reaching Rs 50 lakh, or both.

Furthermore, Section 42(6) of the Act extends the same punishment to individuals who abet such offenses. Importantly, these offenses are classified as cognizable and non-bailable under Section 42(7), underscoring the gravity of such violations.

Growing Concerns Over Telecom Fraud
DoT has observed multiple instances where fraudsters have exploited telecom resources to engage in cybercrimes. Some individuals acquire SIM cards under their names and later transfer them to others, often unknowingly becoming complicit in fraudulent activities.

There have also been cases of Point of Sale (PoS) agents facilitating such illicit procurements by using fake documents, an act that qualifies as aiding and abetting under the law.

Another alarming trend involves the modification of telecom identifiers such as Calling Line Identity (CLI) through mobile applications, enabling fraudsters to mask their identity while engaging in illicit activities.

Similarly, IP addresses, IMEI numbers, and SMS headers have been manipulated to send deceptive messages, adding another layer of complexity to digital fraud.

While speaking with APAC, Sanjeev Sharma, Deputy Director General of the AI & Digital Intelligence Unit (AI&DIU), DoT stated:

DoT’s Commitment to a Secure Telecom Ecosystem
In response to these threats, DoT is actively implementing advanced technological solutions and policy measures to ensure a secure telecom environment for citizens. By leveraging AI-driven fraud detection mechanisms and stricter verification protocols, the department aims to deter malicious actors and enhance public trust in the country’s telecom infrastructure.

DoT has urged all telecom users to remain vigilant and report any suspicious activities related to telecom fraud. Citizens are advised not to share or transfer their SIM cards to unknown individuals and to verify the authenticity of messages and calls before engaging with them.

Sanchar Saathi is another initiative by the DoT to identify and combat fraudulent calls, as well as empower citizens. DoT’s Sharma, during a previous conversation, also stated the role Sanchar Saathi has been playing to tackle cyber frauds.

He explained that the portal and the app collect reports, which we analyze using the digital intelligence platform. This system is backed by over 540 organizations, including law enforcement agencies, state police, financial institutions, telecom service providers, and private entities like WhatsApp.

The data is processed using AI and big data analytics, identifying telecom resources being misused, leading to actions like re-verification, revocation, or disconnection of flagged numbers.

With the Telecommunications Act, 2023 serving as a robust legal framework, DoT remains steadfast in its mission to combat telecom fraud, safeguard consumer interests, and uphold the integrity of India’s digital communications landscape. APAC News Network

Indian skies may open up to satellite internet as early as June, with the telecom regulator preparing the ground for the service that promises to reach distant corners and the open seas.

The Telecom Regulatory Authority of India (TRAI) is giving finishing touches to a set of recommendations on the pricing and use of satellite communications that has been in the making for nearly two years now, three people aware of the development said.

Once a framework is introduced and spectrum allocated, it will set the stage for the debut of satellite internet services by Mukesh Ambani’s Reliance Jio Infocomm, Sunil Bharti Mittal’s Bharti Airtel and Elon Musk’s Starlink.

“The recommendations are very close to being finalized, and the final methodology is mostly here,” one of the three people cited above said on the condition of anonymity, adding that the regulator is taking its time because the recommendations will include details on the revenue sharing model of satcom services, how spectrum will be allocated and priced, and other necessary regulations.

“Once the pricing and operations framework is out, Trai wants to quickly pass it through the Department of Telecommunications (DoT) and have it approved without much conflict,” the official cited above said.

The second official said that Trai may submit its recommendations in March itself and, after a brief consultation period, they are set to be adopted without much change by the Digital Communications Commission.

“This will set the auction process in order, which should take two to three months at best including final trials by operators. By June, operators in satellite services should start generating revenue as well,” the person added.

Queries sent to Trai and DoT, as well as Bharti Airtel and Reliance Jio remained unanswered.

The background
Satcom involves using satellites that connect to a receiver on the ground, which can beam data to devices like mobile phones or laptops. India’s space sector was liberalized to provide access to satellite spectrum and infrastructure between 2020 and 2022.

The promise of these services urged Reliance Jio to sign a joint venture with Luxembourg-based satellite operator SES in February 2022.

A month earlier, Bharti Airtel, with its joint venture partner Hughes Communications India, signed a distribution deal with UK’s OneWeb. In September 2023, France’s Eutelsat acquired OneWeb. Following the completion of the deal, Airtel remained the largest shareholder of the newly formed entity, by virtue of it owning 100% of OneWeb’s India division.

Musk’s satellite internet services firm, Starlink, is the third key competitor in this space. While the service had, for a short while, started accepting security deposits from customers in anticipation of a launch, the Centre’s strictures saw its preorders being suspended. As of now, Starlink has not received its Global Mobile Personal Communication by Satellite (GMPCS) licence, each of the three officials cited above confirmed.

“Starlink is keen on India, but it’s likely that they may not be present when the first operators commence services,” the third person cited above said. “That shouldn’t be a problem, though—satellite services are here for the long run, especially with Musk’s focus on Starlink as a consumer-facing service.”

Jio, however, has not been too comfortable with the looming threat of Starlink. The company has written to the Centre several times to make a case for auctioning satellite spectrum. The Centre, following global precedent, said in the Telecommunications Act, 2023 that satellite spectrum will be given to operators through an administrative allocation process, which is preferred by Starlink.

Question of when, not if
Now, though, the services seem imminent. On Monday, speaking at a press conference at Mobile World Congress in Barcelona, Union telecommunications minister Jyotiraditya Scindia said that each satcom operator “will be treated equally”, and no one will be offered preferential treatment over another.

On 20 February, speaking at an event hosted by brokerage firm Kotak Institutional Equities, Akhil Gupta, vice-chairman of Bharti Enterprises, had said that Airtel-OneWeb’s satellite internet services “will be launched soon commercially”, and that “the gateways in Gujarat and Tamil Nadu are already beaming, with spectrum already given on a test basis”.

Industry stakeholders and analysts expect the satcom services rollout to happen imminently, too, but emphasize on pricing as a key factor. T.V. Ramachandran, president of Broadband India Forum, said while administrative allocation is assured by the Telecommunications Act, and this should see the Trai framework being rolled out very soon, the pricing needs to be kept nominal to ensure access to maximum number of users who otherwise remain unconnected.

“Satcom operators are uniquely different from terrestrial operators, since the spectrum here is fully shared—and the modus operandi should be to connect the unconnected areas,” said Ramachandran. “The pricing of spectrum must, therefore, be done accordingly to ensure that most people get the benefits of the satellite internet services.”

A senior executive close to developments at the Airtel-OneWeb consortium further added, “Bharti Airtel has been ready with its services—to the extent that it can go live with its operations within a very, very short span of time. Regulatory uncertainty has only been stalling the sector, while our satellite constellation and network are both live for enterprise consumption,” the executive said.

Like Airtel, Jio, in October 2023, had announced the launch of Jio ‘Space Fiber’ satellite internet services for consumers. Both remain in functional pilot stages right now, awaiting policy clearance from the Trai, and subsequently, the DoT. LiveMint

Ahead of the govt decision over American Starlink’s satcom license and mobile airwaves allotment, Reliance Jio and Airtel have petitioned the government to ensure “fair competition” in the sector and mandate “comparable” spectrum prices for the Elon Musk-run company in order to tackle “market distortions”.

The representation by the Indian telecom giants, accuses regulator TRAI of “overlooking the need for a level-playing field” between satellite and terrestrial spectrum assignments.

“Comparable spectrum pricing to terrestrial services should be enforced for competing satellite services in urban/semi-urban/rural areas for retail/enterprise customers,” the petition by the local telcos says. “The ‘same service, same rules’ principle is essential for fair competition, requiring satellite operators offering similar services to adhere to the same spectrum pricing, regulatory levies, and fees as terrestrial operators.”

While the new telecom law, passed in December 2023, had stipulated that spectrum to satcom players be allotted administratively on payment of a fee (against auctions for terrestrial makers), the allotment prices and other modalities are currently being worked upon by TRAI.

“Spectrum allotment rules must address the competing nature and market distortions introduced by LEO (low-earth orbit) mega constellations to ensure level-playing field with existing satellite and terrestrial operators,” the representation said.

However, the telcos said that administrative assignments of spectrum with “nominal pricing” should apply for “non-competing use cases” in govt functions, disaster recovery, cellular backhaul, and sectors like defence, maritime, and aviation.

The local operators, who have already received satcom license from govt but await spectrum allotment, claimed that the low-earth satellite solutions are developing mega constellations that can offer broadband speeds and capacity comparable to terrestrial networks.

“Given the oversupply of broadband capacity that these entities are bringing to market, they will distort competition of terrestrial broadband, especially in urban/semi-urban areas serving retail/enterprise customers.”

The companies said that globally the business model of LEO mega-constellations has been to create “oversupply” of broadband capacity.

However, despite demands by telcos, Govt has been steadfast in its decision to allot satcom spectrum administratively, without auctions. Telecom Minister Jyotiraditya Scindia has maintained that satcom spectrum cannot be auctioned due to technological constraints.

“Please understand that technologically there’s a big difference between spectrum that is meant for terrestrial networks and spectrum that’s allocated to satellite-based, non-terrestrial networks. As far as terrestrial networks are concerned, you can allocate frequencies exclusively which can’t be used by others… that spectrum cannot be allocated to a single entity. It is shared. How do you auction something that’s shared? You can’t,” he has said.

Musk’s application for satcom license is still pending with govt over issues of security clearances. Teams representing the company have been clarifying their stand to the DoT and the Ministry of Home Affairs as the application enters the final leg of the approval process, sources say. ToI