Starlink’s Satellite Internet Plans in India

Elon Musk’s Starlink and various satellite communication firms, such as Eutelsat OneWeb, backed by Bharti Group, alongside Reliance Jio’s collaboration with SES, and Globalstar, are gearing up to launch high-speed satellite internet services across India. As reported by The Economic Times, Starlink is set to roll out unlimited data plans at promotional rates below $10 (approximately ₹840) per month, an approach aimed at swiftly expanding its user base in one of the globe’s largest telecommunications markets.

Affordable Pricing to Boost Adoption

Despite facing high spectrum and licensing fees, satellite service providers are striving for rapid growth by presenting cost-effective options. Experts believe this tactic may allow these companies to recover their substantial investments in infrastructure and spectrum by catering to a larger customer base. The ultimate aim is to attract up to 10 million users in India.

The Telecom Regulatory Authority of India (TRAI) has suggested a 4% levy on adjusted gross revenue (AGR), with a minimum annual spectrum fee of ₹3,500 per megahertz. Additionally, these providers will incur an 8% licensing fee. In urban regions, operators will be responsible for an extra ₹500 per subscriber annually, although rural areas will not be subjected to this fee. These proposals are pending final government confirmation.

Hardware Expenses as a Potential Obstacle

While the monthly subscription pricing may appear enticing, the initial investment required for Starlink hardware could discourage many potential Indian customers. On a global scale, Starlink kits are sold between $250 and $380 (approximately ₹21,300 to ₹32,400), which represents a considerable expense when contrasted with India’s fibre broadband services. These services often provide speeds of up to 1 Gbps, feature lower installation costs, and frequently come with bundled OTT subscriptions.

Regulatory Landscape and Competitor Developments

Though Eutelsat OneWeb and Jio-SES have already obtained regulatory clearances, Starlink has a letter of intent from the Indian Department of Telecommunications (DoT) and is waiting for final approval from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

Capacity Limitations May Restrict Expansion

Despite Starlink’s ambitious strategies, technological restrictions may hinder its growth prospects in India. The geographic coverage offered by the satellite constellation within India is limited, estimated to account for only 0.7% to 0.8% of global satellite capacity, equating to merely 700 to 800 satellites available to cover the nation at any moment. This limitation contrasts sharply with India’s extensive terrestrial infrastructure, which boasts over 800,000 telecom towers and 3 million base transceiver stations.

For comparison, in Bangladesh, Starlink currently charges 6,000 BDT (approximately ₹4,200) per month. New users are also required to pay a one-time equipment fee of 47,000 BDT (₹33,000) and an additional shipping fee of 2,800 BDT (₹2,000), resulting in total initial costs nearing ₹37,200.