NEW DELHI: Elon Musk-led Starlink may target niche customers in India due to its pricing, which is significantly higher than the services provided by Bharti Airtel and Reliance Jio.
According to a report by Bernstein, Starlink’s satellite technology offers advantages in remote areas but its high cost and potential speed variability make it less attractive to consumers in urban and semi-urban regions, where Airtel and Jio provide affordable and reliable broadband services.
Reliance Jio and Bharti Airtel have recently announced separate partnerships with Starlink to offer broadband services in India. Both companies have clarified that services will commence only after Starlink receives approval from the Department of Telecommunications (DoT).
Industry insiders say the DoT is likely to grant a licence to the Musk-led company soon. In fact, Union minister for Electronics & Information Technology, Ashwini Vaishnaw, welcomed Starlink to India through a social media post on Wednesday night. However, the minister later deleted the post.
Meanwhile, the Telecom Regulatory Authority of India is yet to release its recommendations on the pricing and other modalities for satellite broadband. Reports suggest that the telecom regulator plans to recommend satellite broadband spectrum be allotted for five years instead of 20 years to assess initial market adoption.