Starlink's satellite broadband poses limited threat to Indian telcos: Report

New Delhi [India], March 15 (ANI): Starlink's satellite broadband services are unlikely to pose a major threat to Indian telecom giants Jio and Bharti Airtel, as their home broadband plans offer better pricing, higher speeds, and unlimited data, according to JM Financial report.
Instead, Starlink's service is expected to complement telcos' existing networks, helping to expand high-speed internet access to remote and rural areas.
Globally, satellite internet plans from Starlink and other satcom companies range between USD 10-USD 500 per month, with additional one-time hardware costs of USD 250-USD 380.
In contrast, Indian telecom companies offer home broadband plans starting at just USD 5-USD 7 per month, with premium plans providing 1 Gbps speed and access to streaming services for around USD 47 per month. Additionally, Starlink's plans come with data caps, whereas Jio and Bharti provide unlimited data.
Given India's price-sensitive market, Starlink's higher costs and speed limitations make it less competitive for urban users. This reinforces its role in serving rural and underserved regions rather than competing directly with Jio and Bharti's Fiber and AirFiber broadband services.
While the current agreement primarily focuses on distribution, there is potential for future collaboration between Jio, Bharti, and Starlink in direct-to-cell satellite services. Globally, Starlink has partnered with telecom companies like T-Mobile (US), Rogers (Canada), Optus (Australia), and KDDI (Japan) to provide satellite connectivity.
Despite this, industry experts believe direct-to-cell satellite broadband is unlikely to disrupt India's wireless market due to several factors. Firstly, the technology still faces technical challenges, such as difficulties in maintaining reliable smartphone connectivity due to power and antenna limitations.
Secondly, Starlink depends on telecom providers for access to 4G/LTE spectrum, making it reliant on existing networks. Lastly, satellite internet generally delivers slower and less reliable performance compared to fiber or traditional wireless services.
While selling Starlink's equipment may generate some revenue for Jio and Bharti, it is not expected to significantly impact their overall earnings. Both companies already have their own satellite broadband ventures--Bharti with Eutelsat OneWeb and Jio with SES (Orbit Connect India)--which are further along in securing regulatory approvals in India.
Additionally, Starlink's large satellite network, with over 6,400 low-Earth orbit (LEO) satellites, gives it a capacity advantage. However, rather than competing with Indian telcos, this scale positions Starlink as a useful partner for expanding connectivity in hard-to-reach areas.
Jio and Bharti have announced agreements with SpaceX to distribute Starlink's broadband services in India. As part of these agreements, the telecom firms will sell Starlink's equipment through their retail outlets, with Jio additionally providing installation and activation support. They will also offer Starlink's services to businesses, schools, and health centers in rural areas.
However, these agreements are subject to regulatory approval, as SpaceX is yet to receive authorization to sell Starlink services in India. (ANI)