The impending entry of Starlink in India’s telecom sector has created excitement among the youth as it promises high-speed Internet to any user even as industry experts are sceptical about how Elon Musk’s company will navigate the challenges of fixing a tariff in a price-sensitive and regulated market.
India’s average mobile ARPU (Average Revenue Per User) is around $3 and broadband services cost around $5 per month, undoubtedly among the lowest in the world.
While there is no official word on the kind of price tag that will be associated with Starlink services, some experts have begun talking about the affordability of this satellite-based services for an average Indian user.
In India’s nearest market Bhutan where Starlink services are already present, the residential package is priced at 4,200 Bhutanese Ngultrum (which is pegged with Indian rupee) or $48.13 per month.
In developing markets like Nigeria, the residential package is priced at 38,000 Nigerian Naira ($24.36) per month.
Telecom industry sources said that Starlink may have to come out with a India-specific pricing model to compete with the existing players, including government-owned BSNL. However, where it can gain traction as a satellite internet service provider is that it would not face the challenge of the high costs and logistical difficulties of laying fibre cables.
This is crucial to increase internet penetration in areas where conventional broadband is yet to reach as any user with a clear view of the sky will have access to the internet through Starlink’s satellites.
Musk has already made a power move by partnering Reliance Jio and Bharti Airtel which together control around 80 per cent of the country’s broadband market. However, the company has to still secure multiple approvals, including spectrum allocation, local data storage compliance, security clearances and landing rights among others.
The Telecom Regulatory Authority of India (Trai) is expected to release recommendations on satellite spectrum pricing soon, paving the way for commercial satellite broadband services from these players. Moneycontrol has reported that the company is expected to soon receive a letter of intent (LoI) after the telecom department and IN-SPACe are satisfied with Starlink’s applications.
