Decentralised Satellites Can Solve India’s Last-Mile Internet Problem

India has around 1,002 million internet subscribers as of the April-June time period last year. The country’s internet reach problem is not restricted to coverage. It is also about consistency. Even in cities like Bengaluru, connectivity drops remain common. Calls fail, videos buffer, and networks switch without warning. In rural areas, the gap is even wider, where access remains limited or unreliable despite years of telecom expansion.

Over the past decade, India has relied on a mix of fibre networks and mobile data to close this gap. Telecom operators have expanded coverage at scale, but geography, infrastructure costs and uneven demand make it difficult to deliver stable internet everywhere. As a result, satellite internet has emerged as a possible solution to this problem. 

Companies like Starlink have shown that global coverage is possible using large constellations of satellites. However, these systems remain centralised, expensive (with subscription costs of $80-120) and tightly controlled, raising questions about affordability and data ownership in markets like India.

Spacecoin, a US-based startup, is building a decentralised satellite network that works with local telecom operators instead of replacing them. 

It proposes a model where, instead of a single company owning the infrastructure, multiple players can launch satellites and share capacity. The company’s CEO, Tae Oh—who is also the CEO of Gluwa, the blockchain firm behind the project—explains to AIM the approach that differentiates Spacecoin from its competitors.

While Starlink has already demonstrated large-scale coverage, Spacecoin is trying not to compete on speed or performance, but on access and cost.

https://youtu.be/qw3K_ML8qTk?si=yqSrBjjiAAki9qvR

A Network that No One Owns

Traditional satellite networks are centralised, with a single company building, launching, and operating satellites. Users then connect to that network, with the company controlling pricing and access. Spacecoin wants to change that structure.

“I don’t really see Starlink or any centralised player as our competitor, because fundamentally, we are trying to achieve a very different thing,” Oh says.

The difference lies in what the network is designed to do. Centralised systems optimise for speed and performance. Decentralised systems, on the other hand, prioritise access and participation. Spacecoin calls this “permissionless connectivity”.

The company positions itself as a protocol provider rather than a service provider. It designs a standard that others can use. Telecom operators, governments or private players can build satellites using this standard and join the network.

This model allows multiple operators to share infrastructure. A satellite launched by one player can serve users in another region. This reduces idle capacity and lowers overall costs.

Oh explains that most satellites remain unused for much of their orbits. “95% of the time, the 10,000 satellites are idle,” he says. By pooling resources, operators can use that unused capacity, reducing the need for each player to build a full global network.

Why India is in Focus

Spacecoin is still in its early stages. The company has launched four satellites so far and is testing its network. It estimates that at least 11 satellites are needed for limited coverage and 66 for global reach.

The company is also preparing for a funding round to support further launches. It plans to work with partners rather than build the entire network itself. Currently, it directs almost 50% of its funding into R&D, around 25% into launch costs, and the rest into other aspects of the business. 

For India, the idea presents an alternative path to improving connectivity. Instead of relying only on fibre or centralised satellite systems, a shared satellite network could fill the gaps.

Spacecoin plans to begin with regions along the equator, including India, Indonesia, Nigeria and Kenya. These regions have large populations with limited or unreliable internet access, Oh explains.

The geographic focus also offers technical ease. A smaller satellite constellation can cover multiple countries along the equator, improving efficiency in the early stages.

In India, Oh says, Spacecoin’s model does not aim to replace existing operators. Instead, it works with them, allowing local telecom companies to launch their own satellites and use the network to extend coverage.

This approach also addresses regulatory concerns. Telecommunications remains a heavily regulated sector, especially around spectrum allocation. By working with local operators, Spacecoin avoids dealing directly with these regulations.

This could make it easier to enter markets like India, where foreign satellite services have faced regulatory hurdles, as seen with Starlink’s entry into the country.

The Cost Question

One of the project’s key claims is low-cost connectivity. The company has suggested that internet access could cost between $1 and $2 per month—significantly lower than current satellite services.

The pricing is linked to how the network is optimised. A high-performance system may deliver faster speeds but serve fewer users, whereas a broader system can reach more people at a lower cost.

The decentralised model also introduces competition between satellite operators. Each satellite acts as an independent node. Operators compete to provide better service at lower prices. This market-driven structure could push prices down over time while shifting control away from a single provider.

The company has already successfully sent messages via its existing satellites and is working on inter-satellite communication and handovers between satellites. 

Oh defines the role of Spacecoin as less of a service provider and more of a foundational layer, drawing parallels with open ecosystems like Linux and Android. “We are basically open source, something like a Linux Foundation for networking,” he explains. In a similar way to how Android powers smartphones without dictating how manufacturers use it, Spacecoin provides the protocol and design, allowing operators to customise, deploy and monetise their own satellite networks.

Beyond connectivity, Spacecoin is also designing its network for a future where machines dominate internet traffic. Oh believes that AI agents will soon account for most online activity.

“I think we’ll have 99% AI agents union in terms of traffic for the networks as compared to humans,” he said.

This shift could change how networks are designed. AI agents require less data per interaction but generate more transactions, making efficiency more important than raw speed. Spacecoin is already building products for this use case and plans to launch AI-focused tools alongside its satellite network.

This vision also affects how communication works in low-bandwidth areas. Instead of streaming audio or video, AI can recreate these experiences using minimal data. This could potentially make connectivity more usable in remote regions.