Amid tensions with President Donald Trump, Elon Musk-led Starlink is set to begin operations in India within two months, following its recent license approval, ANI reported. The company has finalised its pricing structure for the Indian market, setting the cost of the required satellite dish device at approximately ₹33,000. The monthly unlimited data plan is expected to be priced at ₹3,000. Earlier it was expected under ₹840. Recently, Starlink secured the licence to operate in India. For its satellite internet project, the Department of Telecommunications (DoT) had already issued a Letter of Intent (LoI). Now, Starlink only needs a final approval from IN-SPACe to start its services in India. Process almost complete for Starlink Earlier, two companies – OneWeb and Reliance – have been granted licences for satellite connectivity. Now, Starlink joins the list. The next step is to obtain approval from IN-SPACe. All three licence holders will have to go through this process before starting operations.’ Trai to provide policy norms for spectrum allotment On May 4, Minster of Communications, Jyotiraditya Scindia said that OneWeb and Reliance have been given limited spectrum access only for initial testing. A similar path is expected to be followed for Starlink after it receives an official licence. Scindia said, ‘After this, the Telecom Regulatory Authority of India (Trai) will provide policy norms for administrative spectrum allotment, which will control the commercial rollout.’ Spectrum is expensive, but no problem for Starlink Trai has recommended satellite communications companies to keep the monthly charge for urban users at ₹500. This makes satellite communications spectrum more expensive compared to traditional terrestrial services. According to reports, experts believe that due to premium pricing, financially strong companies like Starlink will have no problem competing with other companies in India’s urban market. Trai collects revenue share and licence fees Trai’s recommendations include a 4% fee on Adjusted Gross Revenue (AGR) and a minimum annual fee of ₹3,500 per megahertz spectrum. Additionally, satellite communication providers will have to pay 8 licence fees to offer commercial services. All proposals are awaiting the final approval of the government before implementation. Despite these price points, experts believe that limited satellite capacity may reduce the potential for the rapid growth of the Indian user base. Capacity will prove to be a challenge for companies According to IIFL Research, Starlink’s current group of 7,000 satellites provides service to approximately 4 million users globally. The report states that even with 18,000 satellites, Starlink will only be able to provide services to 1.5 million Indian customers by the fiscal year 2030. IIFL Research said, ‘The lack of capacity could prove to be a challenge in terms of increasing the number of customers. It can also reduce the effectiveness of low-cost tools to connect customers.’ The report mentioned that Starlink had previously stopped connecting customers in some parts of the US and Africa due to similar capacity limits.’ Satellite internet is more expensive than home broadband in India The IIFL analysis stated that at any given time, the share of satellites covering India would be only 0.7-0.8% of the total global satellite count, which is roughly proportional to the country’s total land area. Currently, satellite-based broadband is significantly more expensive in India compared to traditional home broadband services. JM Financial reported that the cost of satellite broadband is 7 to 18 times higher than standard home internet plans. Starlink awaits IN-SPACe approval After receiving approval from the Department of Telecommunications for satellite communication services, Starlink is now awaiting approval from IN-SPACe to start services in India. Previously, Eutelsat OneWeb and Jio Satellite Communications obtained similar licences in 2021 and 2022, but had to wait nearly two years for IN-SPACe approval. The Department of Space established IN-SPACe in June 2020. It acts as a single-window agency to regulate and facilitate private sector participation in space activities. IN-SPACe also works on licensing, infrastructure sharing, and promoting space-based services for non-governmental entities. How will the internet reach you from satellites?
