Challenges Ahead for Starlink in India
While Starlink might have the first-mover’s advantage in terms of offering satellite-based connectivity, Amazon’s Project Kupier has also applied for permission to launch in India. Reliance Jio announced plans to launch its own service called JioSpaceFiber using a European satellite constellation, and OneWeb, backed by Bharti Enterprises, will also jump into the fray with 36 satellites of its own, launched by ISRO.
The big questions now are how much all of this will cost, and who is the target audience? Subscriptions for satellite Internet services will likely be quite expensive. Starlink plans for home users in the US start at $80 (approximately ₹6,860 before taxes) per month, and the upfront cost for the satellite receiver is $350 (approximately ₹30,000) while rooftop installation is an additional $180 (approximately ₹15,500) not including extra mounts and extenders if needed.
While rumours suggest service prices will be significantly lower in India, Starlink will still cost a lot more than 5G cellular or fixed wired Internet access, and the company will have to demonstrate significant value to end users, including business clients. Jio and Airtel’s current service coverage maps show that 5G and 4G access is available across nearly the entire country already. Prices are shockingly low by global standards, most people use the Internet on their phones anyway, and unlimited download plans are the norm. Starlink is also not suited for dense urban areas, and those living in tall apartment buildings might have trouble installing the receiver.
To compete with cellular services, Starlink will have to offer much better speed and reliability, with competitive total cost of ownership. It could have an advantage in extremely harsh terrain, forested areas, and places with very low population density, but cost will be a limiting factor. The company will also need a huge sales force, and will have to train and deploy staff across India who can visit prospective clients to determine if and how a satellite receiver can be installed.
If the company can overcome these challenges and find its audience, it has the potential to bring about a new high-speed Internet access revolution, bringing millions of Indians online and enabling infrastructure-level and device-to-device connectivity on a scale unlike anything we’ve seen before.
So will Elon Musk visit India next week and make a huge Starlink announcement? It looks likely that there will be at least some confirmation of the company’s launch plans, and maybe even prices. However, it will still be some time before we’ll be able to sign up as end users.