Business EconomyPosted at: Sep 29 2025 2:49PM


Starlink not a threat to Indian Telecom giants: India Ratings

Chennai, Sep 29 (UNI) US billionaire Elon Musk’s Starlink Satellite Communication Private Ltd’s satellite internet service will not be a threat to Indian telecom companies given the latter’s competitive rates, said India Ratings Research in a report.
In a recent report India Ratings said Starlink’s upcoming satellite internet services, currently on trial, will likely have strong use cases for remote and mission critical applications.
Starlink has obtained all necessary approvals to launch only satellite internet services in India so far, which is expected to start in the near term with its direct-to-cell services still under the evolutionary stage.
“The upcoming satellite internet services are not likely to pose an immediate threat to Indian telecom companies, since their home broadband internet services are more competitive in terms of pricing and bandwidth than Starlink’s expected offering in the urban areas having dense fibre connectivity,” said Priyanka Bansal, Associate Director, Corporates.
“However, remote and far flung areas, which were earlier facing limited connectivity, are likely to benefit from satellite internet services,” Bansal said.
Starlink’s satellite services will benefit remote or far-flung rural areas and or mission critical services that previously had limited connectivity.
The agency expects satellite internet to outperform the regular fixed-line services in service quality and availability in these areas. Starlink’s satellite internet boasts availability of 99% or higher across data plans.
According to the report, satellite internet will only act as a secondary option for urban areas already having dense fibre connectivity and getting services through multiple telecom players.
Hence, satellite internet will pose a limited threat to the home broadband services provided by the telcos. The services offered by telcos are more competitive in pricing and bandwidth than those by satellite companies for the areas already serviced by telcos.
While Starlink has not announced pricing (monthly charges or cost of customer premise equipment (CPE)/ hardware cost) for India yet, based on some neighbouring countries and recent launches, monthly usage charges could be nearly Rs.3,000-3,500.
This will be nearly 10 times higher than entry-level monthly plans offered by telcos, presenting a significant price differential in a price-sensitive market such as India.
Additionally, Starlink’s CPE cost might range between Rs.30,000-35,000, which is significantly high compared to almost at no cost CPE offered by telcos for three to 12-month plans. Starlink’s pricing and service-level competitiveness compared to telcos will remain a key monitorable.
Starlink’s direct-to-cell technology is still evolving, and has only proven effective for SMS since its launch in 2024 with voice and data services still in testing.
While Starlink’s direct-to-cell services are commercially viable in the US and New Zealand with around six million subscribers, India Ratings believes these services do not threaten Indian telcos which serve around 1,200 million subscribers with 80% data penetration in India.
Although Starlink has approvals for satellite internet in India, it may face spectrum capacity challenges due to high data usage and will likely need to partner with telcos for infrastructure and spectrum use for direct-to-cell services.
Starlink secured a Global Mobile Personal Communication by Satellite (GMPCS) licence in June 2025 from the Department of Telecommunication (DoT).
Subsequently, it obtained approval to launch satellite internet services in India from the Indian National Space Promotion and Authorization Centre (IN-SPACe) in early July 2025.
This approval is valid for five years till July 2030.
Starlink is now the third company in India to receive such approvals, following OneWeb India Communications Private Limited (backed by Bharti Airtel Limited, Jio Satellite Communications Limited and Reliance Jio Infocomm Limited almost two to three years ago, India Ratings said.
While the DoT and Telecom Regulatory Authority of India are still deliberating spectrum allocation and long-term licencing terms, Starlink is set to begin trial runs for its satellite internet services in India in the next three to six months.
In March 2025, Starlink announced partnership with Bharti Airtel and Reliance Jio to support satellite broadband services in India.
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