Outlook Business Desk
Starlink owned by SpaceX, founded by Elon Musk, is a satellite-based internet service designed to deliver high-speed, low latency broadband globally. Instead of relying on underground fiber cables or cellular towers, Starlink uses a network of low earth orbit (LEO) satellites. As of January 2024, SpaceX has deployed nearly 7,000 Starlink satellites.
SpaceX is entering the Indian telecom market. Reliance Jio & Bharti Airtel have announced partnership with SpaceX to bring Starlink's high-speed satellite internet to the country. However, the service will only be available once SpaceX obtains the required regulatory approvals from the government.
Bhutan's Starlink plans include the Residential Lite Plan at Rs 3,001 approx. per month offering speeds of 23 Mbps to 100 Mbps ideal for casual browsing, social media and video streaming. The Standard Residential Plan costs Rs 4,201 approx. per month providing speeds between 25 Mbps to 110 Mbps with unlimited data making it suitable for gaming, HD streaming and video conferencing.
Due to 30% higher taxation on foreign digital services in India, Elon Musk's Starlink plans is likely to be costlier in India than in Bhutan.
Airtel aims to use Starlink to enhance its broadband services and focus on rural connectivity while Jio plans to integrate it into its broadband network and offer its retail and online channels. Group CEO of Reliance Jio, Mathew Oommen, emphasised the company's goal stating that providing affordable, hight-speed broadband to all Indians is a top priority.
India will get potential benefits from Starlink as internet penetration is only 47% leaving over 700 million people without reliable access. Rural connectivity remains a challenge due to the high costs and logistical difficulties of installing fiber cables and mobile towers. With speeds of up to 220 Mbps Starlink's satellite internet could offer a practical solution for remote areas.
Starlink's impact in India could extend beyond consumer broadband transforming sectors like education, healthcare, agriculture & disaster management. Remote villages, Himalayan regions & island territories could gain reliable connectivity for the first time.
India's strict telecom & space regulation require multiple approvals including spectrum allocation, data storage compliance and security clearances. High costs are another hurdle with hardware price at Rs 25,000-Rs 35,000 and monthly fees of Rs 5,000-Rs 7,000 far above India's broadband ARPU of Rs 400-Rs 600. To gain traction SpaceX may need localised pricing or government partnerships.