Starlink May Launch Sub-USD10 Satellite Internet Plans in India: Report

Satellite communication providers such as Starlink are likely to launch their services in India at a promotional price point of less than USD 10 (approximately Rs 840) per month for unlimited data plans. The move is aimed at rapidly scaling the user base to as much as 10 million subscribers over the medium to long term, allowing providers to offset high capital and spectrum costs through economies of scale, ET reported, citing analysts.

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Also Read: TRAI Says Satcom Services Complement and Do Not Compete With Terrestrial Networks

TRAI’s Regulations for Satcom Services

Despite the Telecom Regulatory Authority of India (TRAI) recommending an additional Rs 500 per month charge per urban user, analysts believe deep-pocketed players like Starlink will not be deterred, the analysts noted, according to the report. The regulator has also proposed a 4 percent adjusted gross revenue (AGR) charge with a minimum annual spectrum fee of Rs 3,500 per MHz block, alongside an 8 percent licence fee for commercial satcom services. These recommendations await government approval.

Balancing High Costs with Economies of Scale

“Despite the high spectrum charges and licence fees, satcom companies are expected to launch at low price points—likely sub-USD10—so as to achieve good takeup and amortise their fixed costs (upfront capex incurred) over a larger customer base,” Ashwinder Sethi, partner at global consulting firm Analysys Mason, was quoted as saying in the report.

Analysts caution, however, that satellite capacity constraints could pose a major challenge to Starlink’s market expansion in India, the world’s second-largest telecom market. With a current satellite capacity of 7,000, Starlink has about 4 million subscribers globally. Assuming it reaches a capacity of 18,000 satellites, it would be able to serve only 1.5 million subscribers in India by FY30, IIFL Research reportedly said.