Starlink Plans Unlimited Satellite Internet In India Under Rs 840/Month

(MENAFN- KNN India) New Delhi, May 24 (KNN) India is on the brink of a satellite internet revolution, with companies like Elon Musk's Starlink planning to introduce unlimited data plans priced below Rs 840 per month (approximately USD 10).

This strategic pricing aims to rapidly expand user bases, potentially reaching up to 10 million customers in the medium to long term, thereby offsetting high spectrum and license fees through economies of scale.

Despite the Telecom Regulatory Authority of India's (TRAI) recommendation of a Rs 500 monthly urban user charge, making satellite communication spectrum more expensive than traditional services, analysts believe that well-funded players like Starlink can effectively compete in urban markets.

TRAI's proposed regulatory framework includes a 4 per cent levy on adjusted gross revenue (AGR) with a minimum annual fee of Rs 3,500 per MHz of spectrum, alongside an 8 per cent license fee for commercial services. These recommendations await final government approval.

However, capacity constraints may limit rapid subscriber growth. IIFL Research indicates that Starlink's current constellation of 7,000 satellites supports around 4 million users globally.

Even with an expansion to 18,000 satellites, the network could service only about 1.5 million Indian customers by FY2030, due to limited satellite coverage over the region.

Currently, satellite-based broadband remains significantly more expensive than traditional home broadband services in India, costing between 7 to 18 times more.

Starlink has received approval from the Department of Telecommunications for satellite communication services and now awaits clearance from IN-SPACe to commence operations in India.

Competitors like Eutelsat OneWeb and Jio Satellite Communications secured similar licenses in 2021 and 2022, respectively, but experienced nearly two-year waits for IN-SPACe approval.

The entry of satellite internet services at competitive pricing could significantly enhance connectivity in underserved and remote areas of India, marking a pivotal shift in the country's digital landscape.

(KNN Bureau)

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