Elon Musk's Starlink To Enter India, Compete With Reliance and Airtel

Alongside Donald Trump’s win in the US Presidential race, Elon Musk has another good reason to be happy. He already has significant accomplishments in the space industry, one of which includes Starlink.

Elon Musk has been striving to enter the Indian market with his satellite-based internet service company, Starlink. The world’s richest person plans to compete with Asia’s richest person, Mukesh Ambani and Starlink's launch could be his key tool to accomplish the same in India. Musk has been open about his plans to serve India with Starlink on his platform, X (formerly known as Twitter).

However, Starlink is yet to enter India due to challenges from India’s regulatory bodies. After years of struggle, it seems that Starlink is now poised to enter the Indian market and compete with telecom giants like Airtel and Jio.

Here’s everything you need to know about Starlink’s potential entry into India.

Green light for Starlink to enter India

According to a Times of India report, the Indian government sent Starlink and Amazon a list of security requirements before approving their satellite-based internet services for operation in India. Both companies were required to provide details and compliance information regarding data security, coverage area and other key parameters.

Starlink also issued a declaration to the government, assuring that none of its investors are from India’s neighbouring countries, especially China and Pakistan. Given that it’s a satellite-based service, the government is exercising extra caution.

The Department of Telecommunications (DoT) enforces a strict policy requiring all satellite communications operating in India to store all data within the country.

A recent report from Moneycontrol reveals that Elon Musk-led Starlink has accepted the government's data localisation and security requirements, hinting at a possible launch of the satellite-based service in India.

The article also suggests that US President-Elect Donald Trump could play a major role in backing Musk to negotiate easier regulations with India, as he may be part of Trump’s advisory team.

No auction, only allocation

India’s Telecom Minister, Jyotiraditya M. Scindia, has confirmed that the Indian government will allocate spectrum for satellite internet services rather than auctioning it. India is a member of the International Telecommunication Union (ITU), a UN agency for digital technology. The ITU has already clarified that spectrum should be assigned by respective government bodies.

Promising

— Elon Musk (@elonmusk) November 7, 2024

However, the Telecom Regulatory Authority of India (TRAI) will not allocate spectrum for free and will set a price for it. While Musk has expressed his satisfaction with this approach, it presents a setback for Mukesh Ambani and Sunil Mittal. Reliance and Airtel have advocated for the auctioning of satellite spectrum, arguing that it should be handled similarly to telecom spectrum. Sunil Mittal reiterated this stance at the India Mobile Congress (IMC) 2024 in the presence of India’s Prime Minister, Narendra Modi, and Telecom Minister, Jyotiraditya M. Scindia.

While Starlink was struggling to enter the Indian market, Reliance and Bharti Airtel announced Jio SpaceFiber and OneWeb, respectively. Both operators have received regulatory approval to operate in India. Once Starlink enters, it will compete with these two providers.

But who will pay for Starlink in India?

Starlink could be particularly useful in areas where it is challenging to install optical cables, such as mountainous, remote or restricted regions in India. However, a major challenge awaits Starlink in India.

According to Statista, India offers the third cheapest mobile internet in the world, with an average cost of USD 0.17 for 1GB. The country has price-sensitive consumers who prefer low-cost services. Evidence of this is the latest TRAI report, which revealed that Jio and Airtel lost 4.02 million and 2.41 million users, respectively, following a mobile tariff hike.

BSNL, on the other hand, offers the cheapest internet and that helped it add 2.53 million users in June.

Starlink’s former India Head (as cited by Moneycontrol) suggested that the cost in the first year could amount to INR 1,58,000, which would reduce to INR 1,15,000 from the second year, inclusive of a 30 per cent tax. Consumers would also need to pay for Starlink’s equipment, expected to cost around INR 37,400, along with INR 7,425 per month for services.

These prices could be prohibitive for Indian consumers, who are accustomed to paying an average of INR 14 per GB of mobile data.

Jio and Airtel, on the other hand, are expected to offer competitive pricing that Indian consumers may prefer. Jio, in particular, has promised affordable prices in India for its satellite-based internet services.

When Starlink enters India, it will need to adjust its pricing according to expected sales volumes and competition.