Starlink Wants India But Does India Need Elon Musk’s Internet?

India has made considerable progress in expanding internet connectivity, yet coverage does not necessarily translate into reliable internet access. Satellite broadband could close the gap, but its cost, capacity and security requirements will determine how much of a role it can play. Elon Musk’s Starlink is seeking access to India; however, its entry raises a question of whether one of the world’s largest telecom markets needs another satellite internet provider to bridge its digital divide, or can domestic telecom networks meet most of the remaining demand.

India offers Starlink an enormous potential market. According to Greyhound Research Founder and CEO Sanchit Vir Gogia, the satellite internet provider ended June with 12 million subscribers globally, twice its subscriber base a year earlier, after adding 1.7 million customers in the second quarter alone. Its average revenue per subscriber, however, declined from $85 a month to $66 during the period.

While India could add significantly to its customer base, its importance may extend beyond household subscriptions. Greyhound Research sees opportunities in enterprise, government and satellite-to-phone services, where connectivity requirements and willingness to pay are different.

India is an important market for any global connectivity provider, says Kunal Bajaj, Cofounder and CEO of CloudExtel, although the country's contribution to Starlink's overall earnings remains uncertain.

“India is one of the largest markets in the world and one of the largest telecom markets. Anybody in the connectivity space anywhere in the world should think about being present in India because the numbers here are huge, in terms of use cases and subscribers, even though average revenue pools are compressed and there is high cost sensitivity,” he said.

How Big Is India's Internet Connectivity Gap?

According to the Ministry of Statistics and Programme Implementation's Comprehensive Modular Survey: Telecom, 2025, conducted between January and March 2025, 86.3% of Indian households had internet access at home. The proportion was 83.3% in rural areas, compared with 91.6% in urban areas.

Union Minister Jyotiraditya Scindia, while responding to questions in Lok Sabha in February 2026, said that around 6,34,955 of India's 6,44,131 villages had mobile connectivity as of December 31, 2025. Of these, 6,31,834 villages had 4G connectivity.

However, the presence of a mobile signal does not necessarily mean households have reliable broadband, sufficient network capacity or the money to access it. Bajaj said 4G coverage already extends to around 99% of India's population, while 5G covers approximately 85%. He argued that the remaining gap largely concerns specific locations and use cases rather than widespread absence of internet infrastructure.

However, mobile coverage should not be treated as a complete measure of connectivity, says Konark Trivedi, Managing Director at Frog Innovations.

"Reliable broadband, indoor availability and consistent speeds remain important considerations," he said, adding that satellite services could address both underserved locations and weaknesses in existing networks.

Can Starlink Reach India's Underserved Population?

Satellite broadband has an advantage where laying fibre or establishing mobile infrastructure is difficult or commercially unviable. Remote industrial facilities, mining locations, ports, maritime operations and isolated public institutions could be among its potential customers.

It could also connect schools, healthcare centres and village Wi-Fi facilities through shared access, rather than requiring every household to purchase a satellite terminal. Satellite links can additionally provide backhaul for remote mobile towers and connectivity during disasters when terrestrial networks are damaged.

Trivedi said the satellite communications technology could complement existing infrastructure, particularly where businesses require an independent connection to avoid disruptions. “Satellite becomes particularly valuable where terrestrial connectivity is unavailable, inadequate, difficult to deploy or needs an independent backup,” he said.

However, satellite capacity is shared across users within a geographical area. Trivedi said fibre and adequately provisioned fixed wireless access would generally remain better suited to densely populated locations, where network capacity can be expanded through additional infrastructure.

Will Starlink Be Affordable In India's Cheap Data Market?

Affordability could prove a bigger obstacle than demand. Last year, Starlink had proposed a price for its terminal of around ₹35,000, which the company later withdrew.

Bajaj estimated Starlink's revenue per user at $65–70, or approximately ₹6,500, arguing that such pricing would restrict household adoption.

Musk, meanwhile, has acknowledged the challenge, saying that Starlink would need affordable pricing to attract Indian customers, where mobile data costs are among the world's lowest.

The initial market, therefore, could be enterprises and customers in remote locations rather than ordinary households. It would also depend on the Spectrum costs that the companies would pay.

Can Indian Companies Bridge the Gap Without Starlink?

India already has alternatives in both terrestrial and satellite connectivity. BharatNet's fibre network, mobile infrastructure operated by Jio, Airtel and BSNL, and fixed wireless access services form the existing backbone.

On the satellite side, Bharti Airtel-backed Eutelsat OneWeb has an operational low-Earth-orbit constellation, while Jio has partnered with SES, forming Jio Space Technology Ltd. The joint venture, in which Jio Platforms holds 51% and SES 49%, was announced in 2022 to provide satellite connectivity using SES's geostationary and medium-Earth-orbit networks.

Jio, on its part, has ground stations and equipment ready, with SES satellites available to support its proposed services, said a person familiar with the matter. The company is awaiting security clearance from the Ministry of Home Affairs and clarity on spectrum charges.

Commenting on Elon Musk's allegations of oligarchy in the sector, the company has also said that it is open to competition and it awaits the same clearances pertaining to security matters, as OneWeb and Starlink.

Starlink's arrival need not mean a direct contest with fibre and mobile broadband. Its commercial opportunity could lie in locations and applications that terrestrial networks do not serve efficiently. Bajaj described fibre, wireless and satellite connectivity as complementary technologies, with satellite likely to address specialised enterprise requirements rather than mass-market consumer broadband.

Competition could nevertheless encourage domestic operators to improve their satellite offerings, expand partnerships and invest in network resilience.

Aatmanirbhar Bharat And National Security Concerns

The question of what would India lose by keeping Starlink out would extend beyond commercial competition to control over critical communications infrastructure. Satellite networks operated by foreign companies raise concerns around lawful interception, data access, terminal identification and the ability of authorities to monitor services.

However, keeping Starlink out could also mean losing access to another provider and its technology, particularly for remote operations and disaster recovery. According to Trivedi, security scrutiny is necessary but should apply to every provider. Bajaj similarly emphasised the importance of compliance with India's interception and monitoring requirements.

Recent developments in Ukraine and Iran have added to the debate. SpaceX's satellite services used by the Ukrainian military faced restrictions, highlighting a scenario of dependence that can arise when critical communications rely on a privately controlled foreign network.

India has already maintained that Starlink, Jio Satellite Communications and Eutelsat OneWeb are at broadly similar stages of the regulatory process, with security assessments underway. Experts have said that India wants to maintain control of such services in times of crises. For instance, whether the companies would comply with the government’s terms of giving up control and blocking access to their services for a particular region or time period, in national security and public order matters, could also be a decisive factor in how the firms get the clearance and approval.

So, Does India Need Starlink?

India does have a case for satellite broadband, but that does not automatically make Starlink indispensable. Domestic fibre, mobile and fixed wireless networks can address much of the mainstream demand, while OneWeb and Jio's partnership offer alternatives in satellite connectivity.

Starlink could add value in remote locations, institutional connectivity and enterprise back-up. Its ability to reach ordinary households, however, will depend on whether equipment and subscription costs can be brought closer to India's broadband market.

The choice is therefore not simply between admitting Starlink and relying on domestic companies. It is about expanding connectivity through multiple technologies while ensuring affordability, competition and national security. India may benefit from Starlink's entry, but it does not need to make any single foreign provider the centre of its digital connectivity strategy.