Elon Musk-led Starlink has received a licence to launch satellite broadband services in India. However, its pricing is expected to be significantly higher than that of existing terrestrial networks.
While Starlink is preparing to begin commercial operations in India, it is already active in neighbouring countries like Bangladesh and Bhutan. A closer look at its pricing in these markets indicates that the service may be relatively expensive for Indian users compared to broadband services provided by companies such as Reliance Jio, Bharti Airtel, and Vodafone Idea.
In May, Starlink commenced operations in Bangladesh with two primary plans. The Residential Lite Plan is priced at nearly BDT 4,200 per month (about `3,000 to `3,150) and offers unlimited deprioritised data, making it suitable for smaller households with lower usage. The Standard Residential Plan costs BDT 6,000 per month (roughly `4,000 to `4,500) and includes unlimited data for regular household usage. Customers in Bangladesh also face a one-time hardware cost of BDT 47,000 (about `33,000 to `39,000).
Even if the company maintains similar or slightly reduced pricing in India, it would still be expensive compared to wired broadband service providers. In India, most internet service providers charge a one-time installation fee of around `1,000, while monthly charges range from `699 to `999, offering unlimited high-speed internet.
According to a report by Bernstein, Starlink offers broadband speeds ranging from 50 to 200 Mbps. The service currently requires an upfront payment of `52,242, with a monthly subscription fee of `10,469. Due to this high pricing model, Starlink may struggle to compete with established players in India’s price-sensitive market.
Regulatory requirements add another layer of complexity. According to recommendations by the Telecom Regulatory Authority of India (TRAI), satellite internet companies must pay 4% of their adjusted gross revenue (AGR) for geostationary orbit-based fixed satellite services and mobile satellite services. This is subject to a minimum annual spectrum charge of `3,500 per megahertz (MHz). For non-geostationary orbit-based fixed satellite services, an additional `500 per urban subscriber per annum is levied, with rural and remote areas exempted. These regulatory costs, combined with already high consumer pricing, pose a significant challenge for Starlink’s expansion in India. In Bhutan, Starlink offers similar services with a few additional options. The Residential Lite Plan is priced at BTN 3,000 per month (`3,000) and provides internet speeds ranging from 23 Mbps to 100 Mbps. The Standard Residential Plan costs about BTN 4,200 per month (`4,200), with speeds between 25 Mbps and 110 Mbps, along with unlimited data. Equipment costs in Bhutan are substantial: Standard Starlink Kit is priced at BTN 33,000 plus shipping.