Starlink, a major satellite communications (satcom) services provider is all set to enter the Indian market. Developments have been there since years, yet, the company hasn't found its way into one of the largest telecom markets in the world. SpaceX recently partnered with Reliance Jio and Bharti Airtel in India to bring its services for the Indian consumers. Things are suddenly moving pretty fast for the satcom operator. Many believe that the company will benefit from the distribution Jio and Airtel will give it. At the same time, many believe that there's a cost issue looming over Starlink, especially in a super price sensitive market like India.
Here's our understanding of the whole scenario.
Read More - DoT Mandates Testing, Certification of Satcom Equipment
Starlink's Cost in Butan: Will India be the Same in Pricing?
India is a much bigger country than Bhutan. Even if Starlink were to lower the margins here, the company could very fast recuperate its investments if it can hit the right scale. In Bhutan, Starlink's services start around Rs 3,500 per month. This is for speeds ranging between 23 Mbps to 110 Mbps. If you want more speed, you need to pay more. In India, this could be the same price. But here's what many people don't understand. There's a bigger upfront cost in purchasing a Starlink connection.
Remember 2021, when the Department of Telecommunications (DoT) had asked Starlink to refund the money it had taken from the Indian customers for pre-bookings. Users in India were pre-booking the connections at $99 (Rs 7,200 approx at the time). This would have let the users get access to the Starlink equipment which is required in the first place to get the internet signals from space. This is not a cost many middle-income households woudl be ready to pay in India.
Especially when the consumers have the option to opt for Jio AirFiber or Airtel AirFiber. So not only are the Starlink plans expected to be more expensive, the equipment cost looks like a major entry-barrier in the first place. Even if the company decides to go via a discount route intially, if there's an alternative at a cheaper cost, Indian consumers would just go for that.
Read More - Starlink Accepts Indian Govt’s Demands for Getting License: Report
Starlink is Not for Everyone?
For the Indian market, Starlink would serve more special purposes than to just connect people like the telecom operators do. Starlink's services can be deployed in areas where it's hard to take fiber or even AirFiber (Fixed-Wireless Access) services. Starlink coluld potentially partner with the government to offer help with more specialised use cases such as connectivity in rural India, connecting railways, and more.
There's will likely be a cost issue for Starlink in India. It will be interesting to see how Airtel and Jio's massive distribution can help the company.
