The pricing of air frequencies used by satellite companies have snowballed into a full-blown battle in India, with billionaires Mukesh Ambani and Sunil Bharti Mittal on one side and Elon Musk and Jeff Bezos on the other.

On Tuesday, Airtel chairperson Mittal said that satellite companies should buy spectrum in the same manner as mobile network operators if they go after the urban, well-off subscribers. 

“Satellite companies who have ambitions to come into urban areas, serving elite retail customers, just need to take the telecom licenses like everybody else…they need to buy the spectrum as telecom companies buy,” Mittal said while addressing the inaugural ceremony of the India Mobile Congress (IMC) on Tuesday. Mittal owns a minority stake in Eutelsat OneWeb satellite company.

Reliance Jio, India’s leading telecom operator, has been strongly opposing the government’s move to assign spectrum to satellite communication companies without auction. Bharti Group, on the contrary, has pressed for administrative allocation of satellite spectrum on several occasions in the past. The company was quick to issue a clarification following Mittal’s statement, stating that Bharti Group had asked for administrative allocation for remote and unconnected areas and for captive usages by government and public agencies.

Jyotiraditya Scindia, union minister for communications, clarified later in the day that India will not auction satellite spectrum and will assign it administratively, in line with global standards.

If the government prices the airwaves used for satellite communication services higher, the satellite communication companies will be compelled to go after the urban and connected subscribers (as alluded by Mittal), said K Krishna, Business Head, Asia Pacific, Amazon Kuiper, while speaking at a panel discussion at the IMC titled ‘Regulatory aspects of satellite communication, including other non-terrestrial networks’ on October 16.

“On spectrum pricing, the universal model that administrations are adopting is a cost recovery model. You recover your cost. You are not giving out anything (spectrum), it’s an access you are giving (contrary to mobile network spectrum frequencies which are bought in auction by the telcos). It’s a shared spectrum,” Krishna said, adding the need to balance out the sharing between different users, which can include startups, academic institutions, and companies like Starlink and Kuiper.

The other crucial thing for regulators to keep in mind is to not give into the unwarranted fears of the telecom industry, which often complains of satellite companies eating their pie.

If the pricing is kept fair, the satellite companies will be incentivised to go after the unconnected people, Krishna said. “Now if you price spectrum higher, we will go after the other (urban, connected) customers,” Krishna said.

Citing ITU data, Krishna said there is a need for $488 billion to connect and bridge the digital divide. This will happen through a combination of mobile and satellite networks. There is no reason for the two industries to collide, he said.

The Amazon executive said that the investment in the low earth orbit satellite constellations is to the tune of $10 billion. For these investments to make sense and services to become accessible, the government must provide a predictable policy and bring a light touch regulation.

“Don’t look at satellite services as golden goose…. We are trying to reach the last customer. So, if your goal is to reach that customer, we share that goal too. But if you burden us with a lot of fees, we may not be able to cost effectively serve them,” Krishna said.

David Goldman, Head, Satellite Policy, SpaceX, who was one of the panelists at the IMC session, said that satellite spectrum is a shared resource, and thus it can’t be auctioned—reiterating what Elon Musk tweeted a few days ago.

Goldman cautioned the government that for satellite operators to succeed, it is important for the government and the regulator to encourage operators to coordinate spectrum usage.

“If operators don’t have motivation to co-operate, that’s when licenses don’t work. That’s when the whole approach falls apart,” Goldman said. 

He said Starlink, which already has 7,000 satellites in its constellation, operates in 100 countries and has 4.1 million customers on the network.

Goldman said Starlink has launched a new service, direct to cell (D2C), wherein the mobile users can connect with satellites in case they go out of mobile network coverage area. The company has launched additional 200 satellites for the direct to cell service, and is in the process of launching another 100 satellites for a full-fledged commercial launch, he added. 

The company, however, doesn’t offer direct to cell services on its own. Starlink partners with a telecom service provider to offer the service. The company has partnered with T Mobile in the US to offer the new service.

Allaying fears of telecom service providers, Goldman said the company only provides services when it has a local terrestrial service provider as a partner. “We use the spectrum that our partner is licensed for. Once we have a mobile partner, they will tell us which spectrum we can use. We then plug into that network and become effectively a backhaul system to their network. Using their licensed spectrum,” Goldman said.

This helps in extending the reach of the terrestrial network tremendously, he said. There are places where it may not make sense economically to put towers, and the direct to cell service can come handy in those geographies, he said.

As of now, the direct to cell service only allows text messaging, WhatsApp, and voice.

Initially, the direct to cell ideal can be clearly used for emergency situations, he said. Last week, Starlink provided emergency services for the victims of hurricanes Milton and Herlene in the US. “We immediately saw thousands and thousands of SMSes go through the system,” he said.

Ecommerce enablement platform Shiprocketexpects quick commerce to drive demand this festive season and contribute $1 billion in gross merchandise value (GMV), the company said on Thursday. 

Shiprocket projects the Indian festive ecommerce market to grow 23% during the key months from October to December 2024 to $12 billion compared to $9.7 billion in the previous year. It expects this growth to be driven by consumer demand in high traction categories like fashion, electronics, beauty, and personal care. AI-driven recommendations and social media influencers are significantly influencing consumer behaviour in fashion and beauty, with 84% of consumers purchasing products based on promotions or influencer suggestions.

The festive ecommerce growth is also being driven by growing digital penetration in Tier II and Tier III cities, which is fuelled by improved access to the internet, rising disposable income, and enhanced digital literacy, said a statement by the company. It sees 60% of online festive orders to originate from non-metros this year. 

The country’s ecommerce export market is presently valued at about $3-4 billion, but is expected to surge to $200-300 billion by 2030, particularly helped by micro, small and medium enterprises (MSMEs) that continue to tap into global markets and government initiatives like the Directorate General of Foreign Trade (DGFT). 

Global appetite for Indian goods during the festive season has significantly increased, and is catered to by Amazon Global and Flipkart’s Global Stores. Some of the popular export categories include handicrafts, home décor, and fashion. Shiprocket currently facilitates about $100 million in global ecommerce GMV. 

To help merchants capitalise on the demand this festive season, Shiprocket introduced innovative solutions, including Shiprocket Quick—a hyperlocal delivery service for offline merchants. It allows MSMEs to deliver to local customers within minutes, enhancing competitiveness during the season of instant gratification. Additionally, Shiprocket has improved its recommendation algorithm to match sellers with optimal logistics partners. 

Hello,

Are we closer to a greener future?

The world is nearing the “age of electricity” as fossil fuel demands are expected to peak by the end of the decade, the International Energy Agency said. Clean energy projects are on the rise and China alone accounted for 60% of new renewable energy in 2023, with its solar generation on course to exceed the US’ total electricity demand by early next decade.

India is also stepping up its clean energy plans with a $109 billion investment in the electricity grid to incorporate new renewable sources.

Meanwhile, Silicon Valley is looking at nuclear power for its clean energy requirements. 

Amazon on Wednesday said that it was investing in small nuclear reactors. The news comes just two days after Google laid out similar plans. Both tech giants are seeking new sources of carbon-free electricity to meet surging demand from data centres and artificial intelligence.

Late last month, the owner of the shuttered Three Mile Island nuclear power plant said that it plans to restart operations under an agreement that would allow Microsoft to buy the power to supply its data centres.

Will the switch to clean energy be fast enough to undo damage to the environment?

The year 2023 was the hottest year on record. And, preliminary findings by an international team of researchers show the amount of carbon absorbed by land has temporarily collapsed.

Other warning signs show the Earth is not able to regulate the human-led climate crisis. Greenland’s glaciers and Arctic ice sheets, for example, are melting faster than expected, which is disrupting the Gulf Stream ocean current and slowing the rate at which oceans absorb carbon.

ICYMI: The aftermath of a rare flood in the Sahara. 

In today’s newsletter, we will talk about 

• Crafting quality culinary experiences
• BharatPe slashes EBITDA losses
• Transforming legacy systems via GenAI

Here’s your trivia for today: Which country’s legislative body is called the “Diet”?

Startup

Crafting quality culinary experiences

Food takes centre stage at every event—from the grand wedding buffets to smaller spreads at intimate parties. More often than not, many guests inquire about the catering services provider, hoping to hire them in future.

Ensuring that the food lives up to expectations is a daunting task. While many are lucky enough to find the perfect caterer for their event, others may not. This is where CaterNinja comes in.

Pocket-friendly catering:

• To accommodate varying catering needs, CaterNinja’s proprietary algorithm—leveraging extensive consumer behaviour datasets—simplifies menu customisation, enabling customers to generate personalised quotes based on event size and cuisine preferences.
• The startup has strategically located cloud kitchens in Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, and Pune, where it prepares the food and maintains quality control, ensuring fresh, quick delivery to clients across different locations.
• According to the co-founders, CaterNinja clocks in a monthly order volume of 1,000. With a 10X quarterly growth, the company has offered its services in over 25,000 events, so far.

Funding Alert

Startup: UGRO Capital

Amount: $40M

Round: Debt

Startup: Everstage

Amount: $30M

Round: Series B

Startup: Primus Senior Living

Amount: $20M

Round: Seed

News

BharatPe slashes EBITDA losses

The BharatPe Group demonstrated growth over the fiscal year, reducing its EBITDA loss before share-based payment expense by 75% to Rs 209 crore in FY24 from Rs 826 crore in the previous financial year.

The fintech firm’s revenue from operations also jumped 39% to Rs. 1,426 crore, from Rs 1,029 crore in the previous year.

Sustained growth:

• In its core business areas, BharatPe expanded its average merchant lending portfolio by 40% compared to FY23. It also enhanced its payment solutions by introducing Android POS systems for merchants and continued to see strong adoption of its soundbox devices. 
• Calling FY24 a “milestone year” for BharatPe as it turned EBITDA positive in October 2023, CEO Nalin Negi said the fintech had “considerably slashed” its cash burn in FY24 and was on track to build a “sustainable and profitable business”.
• Looking ahead, BharatPe plans to focus on growing its lending vertical, launching new products in POS and soundbox, and scaling its consumer business.

Interview

Transforming legacy systems via GenAI

GenAI has become a key priority for enterprises across the globe, for productivity gains and to create newer models for businesses to operate. IBM has been at the forefront of the belief that AI has a role to play in augmenting existing technology systems or people, rather than replacing them.

In the case of several older computer languages which are still operational but skills are fewer, GenAI is also playing a key role in refactoring these legacy systems into more modern applications, believe Ritika Gunnar, General Manager, Data and AI, IBM; and Vishal Chahal, VP, IBM India Software Lab. 

Mordernising legacy languages:

• GenAI is being used to understand code as a starting point, Gunnar states–an invaluable ability as the skills to understand and document legacy languages has become a lot more scarce.
• At the same time, one should look at AI as augmenting the human and not replacing the human, according to Gunnar. Even with the GenAI that’s driving code, to ensure accuracy rates, it is important to still have a human in the loop. 
• Agents will become the middleware of GenAI, believes Chahal, with a key role in planning and optimising data and code for various models.

News & updates

• Prada spacesuits: Luxury fashion house Prada and commercial space company Axiom Space have unveiled the designs for a spacesuit that will be worn for NASA’s Artemis III moon mission. Unveiled during the International Astronautical Congress in Milan on Wednesday, the mostly white suits feature a cropped torso and stone-grey patches across the elbows and knees.
• Ancient wonders: A museum housing the world’s largest collection of ancient Egyptian artefacts has opened the doors to some of its galleries. The 120-acre Grand Egyptian Museum near the pyramids of Giza, will showcase over 100,000 objects, including treasures from the tomb of King Tutankhamun.
• Colour on Kindle: Amazon on Wednesday announced its first colour Kindle e-reader following years of effort to bring the more immersive device to market. The ‘Kindle Colorsoft’ carries a $280 price tag.

Which country’s legislative body is called the “Diet”?

Answer: Japan

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