Elon Musk set to launch starlink internet, big challenge for Mukesh Ambani’s Jio, Sunil Mittal’s Airtel, how much it will cost?
GH News November 14, 2024 06:06 PM
Starlink the satellite internet service operated by Elon Musk is gearing up to launch in India with services expected to roll out next year. This comes as the company collaborates with the Indian government to meet regulatory requirements. The Telecom Regulatory Authority of India (TRAI) is set to finalise its recommendations on satellite communications by mid-December.
How Starlink will decide its pricing for the internet and its potential impact on existing internet service providers like Mukesh Ambani’s Jio and Sunil Mittal’s Airtel.
Starlink’s Anticipated Pricing in India
While Starlink has not officially disclosed its pricing for India India TV report citing the companys former head in India has given some insights. The initial cost for subscribing to Starlinks satellite internet service is projected to be approximately Rs 158000 in the first year. This price includes a one-time purchase of the necessary equipment. From the second year onward the annual cost is expected to drop to around Rs 115000 which factors in a 30% tax on services.
Breaking down the costs:
User Equipment: ₹37400 (one-time purchase)
Monthly Service Fee: ₹7425
These figures suggest that while the upfront investment is high the recurring monthly charges could be competitive especially for users in remote or underserved areas where traditional broadband options are limited.
Competition for Jio and Airtel
Starlinks entry into the Indian market could pose significant competition to established telecom giants like Jio and Airtel especially in rural and remote regions where broadband penetration is still low. Jio and Airtel have been expanding their 5G networks but satellite internet could provide an alternative solution particularly in areas where terrestrial infrastructure is challenging to deploy.
Spectrum Allocation For Starlink
A major regulatory consideration that could influence Starlink’s pricing in India is the allocation of satellite spectrum. The Indian government has announced plans to adopt an administrative allocation model for satellite spectrum but final decisions on this matter are still pending.
TRAI is currently reviewing feedback from public consultations on satellite communication rules and is expected to finalise its recommendations by December 15. These new guidelines will help determine how radio waves (spectrum) are allocated for satellite-based internet services which could pave the way for Starlink and other satellite providers to expand their broadband offerings across the country.
With Starlinks ability to deliver high-speed internet directly via satellites it could serve as a game-changer for users looking for reliable connectivity in underserved regions. However the high cost of entry might limit its appeal to a niche market unless prices become more competitive over time.