Starlink, the satellite internet service owned by Elon Musk’s SpaceX, is preparing to roll out its services in India, which may give tough competition to the existing home broadband players such as Reliance Jio and Bharti Airtel.
The project is being initiated in India in a huge investment of Rs 8000 crore aimed at launching 700-750 satellites in Low-Earth orbit (LEO) in the sky above India.
What are the key challenges Starlink might face in the Indian market?
The price may be expensive for the customer, but it may become cheaper if substantial user adoption occurs. This has the potential to disrupt existing telecom models virtually overnight. This could lead to a major shift in telecom strategies, but technological hurdles relating to direct-to-cell may stall its impact on wireless services. As yet, there haven’t been any serious user complaints on Downdetector.
Why is Starlink a tough competition to Jio and Airtel’s broadband dominance?
In a recent expert session with JM Financial, it was pointed out that Starlink satellite will be deployed at the Low Earth Orbit (LEO) in India. Starlink is going to put around 700 750 LEO satellites into operation in India. Starlink plans to invest Rs 8,000 crore (USD 1 billion) in India. This equals approximately USD 1 million invested per satellite, as several media outlets reported.
In July, Elon Musk-owned satellite communication firm Starlink received clearance from the Indian space regulator, the Indian National Space Promotion and Authorisation Centre (IN-SPACe), sources were quoted as saying by news agency ANI. In early June, Starlink was provided with license by the government to launch GMPCS (Global Mobile Personal Communication by Satellite) services, VSAT Services and ISP Category-A under unified license. Starlink is the third company to receive approval for satellite communication (satcom) services from the Department of Telecom, following OneWeb and Reliance Jio.
Starlink’s imminent launch comes as India continues to push for digital inclusion and improved internet connectivity across its vast geographical expanse, particularly in areas where traditional internet service providers have struggled to establish reliable networks.
The new Starlink satellites have a projected lifespan of 7 to 8 years, while the expected annual operating costs are expected to be close to USD 350 crore
A key component of this satellite internet service is the Customer Premise Equipment (CPE), currently priced at approximately USD 400 (around Rs 35,000). However, as per media reports, the local manufacturing in India could reduce these costs by up to 50%. Media reports suggest that experts suggest that leasing models or government subsidies may also be introduced to encourage broader adoption among users.
Initially, user charges may be as high as Rs 11,250 per month due to the small customer base. But as Starlink scales up to 2.5 million users, the monthly cost could drop to just Rs 450, underlining the potential for affordable, scalable satellite internet access in India.