Let’s Talk: Starlink Could Face Cost Issues in India

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.

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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.