Global players, such as Elon Musk’s Starlink and Amazon’s Project Kuiper, are preparing to enter the Indian market and setting the stage for a new era of satellite internet competition. The company has reportedly submitted its acceptance of the IN-SPACe authorisation letter and has agreed to all conditions in the final draft. This brings it closer to finally beginning operations in India.
Starlink has also previously secured a letter of intent (LoI) from the Centre’s telecommunications department (DoT), marking a significant step towards launching satellite internet services in the country.
This approval follows Starlink’s addressal of national security concerns and its agreement to comply with India’s regulatory and security requirements. As of June 6, it was also granted license authorisations to offer satellite-based connectivity in India.
These licenses allow them to deploy ground stations and begin commercial services once spectrum and operational clearances are finalised. The portal also outlines compliance requirements under India’s regulatory framework, ensuring that satellite players adhere to national security, licensing, and user identification norms.
Regardless, the license does not confer any right to assignment or spectrum use, for which a separate specific frequency assignment will be required from the Wireless Planning and Coordination (WPC) Wing of DoT.
Costs Shake Up the Market
Indian mobile broadband prices hover around ₹10 per GB, making the Indian market extremely price-sensitive. In comparison, Starlink’s residential plans, as seen recently in Bhutan, cost around ₹3,000 a month for 100 Mbps speeds with unlimited data, a steep premium over Indian mobile tariffs.
An industry expert, who wished to remain anonymous, expressed, “Starlink is not at all a competition for mainstream mobile networks, partly due to pricing. With typical Indian consumers paying around ₹300 per month for fibre broadband, Starlink’s monthly charge of ₹3,000 is unaffordable for the mass market.”
Moreover, Sid Tipnis, partner at Deloitte India’s TMT consulting practice, believes that affordability is an issue. “As a play, to say that you will need to attach a device which costs you ₹30,000 upfront…the affordability has to first come up from a B2C standpoint.”
Moreover, the cost of Starlink’s user terminals, which require a flat satellite dish, adds a significant upfront expense that Indian consumers may hesitate to bear.
Tamil Nadu information technology and digital services minister, Palanivel Thiaga Rajan, recently announced in the state assembly that the government will roll out a high-speed internet plan offering 100 Mbps connectivity at ₹200 per month to households by the end of 2025.
Starlink is Not a Competition
India’s existing 4G and expanding 5G networks already provide wide coverage, including rural areas. Reliance Jio alone has over 494.47 million subscribers. For Starlink, competing directly with such established terrestrial networks will require pricing strategies and services that address these market realities.
The current absence of a formalised satellite spectrum policy is a critical bottleneck. With the policy still being drafted, it suggests that commercial rollout could face further delays.
Starlink’s arrival in India is backed by an unexpected partnership with the country’s two largest telecom providers, Reliance Jio and Bharti Airtel, who together control nearly most of India’s mobile broadband market. This collaboration allows Starlink to utilise the existing retail and distribution infrastructure of these giants without heavy upfront investment.
While some claim satellite services will not compete with terrestrial networks, experts suggest that they will be competitive where traditional coverage is cost-ineffective, such as in remote areas like deserts, oceans, or forests.
Regardless, the expert further mentioned, “Starlink will mostly tap the rural market where there is no fibre. But fibre is still essential to an extent. Satellite is not designed to handle the massive scale of telecom networks.”
He also pointed out performance issues regarding Starlink’s reliance on Low Earth Orbit (LEO) satellites. “You will stay in coverage for nine to 10 minutes, and then experience a switch before the next satellite comes in. This causes signal fluctuations.”
Such limitations, he added, reduce Starlink’s potential to match the seamless experience of terrestrial networks, especially in mobile contexts.
Spectrum Battles and Regulatory Moves
The Indian government’s approach to satellite spectrum allocation will play a crucial role in determining the success of satellite internet providers. The Telecom Regulatory Authority of India (TRAI) initially favoured a spectrum auction model, advocating for satellite operators to pay fees comparable to those of terrestrial network providers to ensure a level playing field.
Industry leaders, such as Airtel chairman Sunil Bharti Mittal, have publicly supported auctions, arguing that satellite services require differential pricing that reflects their role in supplementing mobile coverage in hard-to-reach areas, rather than directly competing with terrestrial services.
Yet, the Telecommunications Act of 2023 allows for administrative allocation of satellite spectrum. This shift enabled Starlink’s swift entry into the Indian market, giving it an edge by utilising the telecom giants’ extensive sales networks. Final spectrum pricing and licensing terms are still pending, with ongoing consultations influencing the regulatory landscape.
India’s decision on how to allocate spectrum could influence future satellite internet policies globally, as many nations are interested in the world’s second-largest telecom market.
The debate over whether satellite spectrum should be auctioned or administratively allocated remains heated. “Ideally, it should be a level playing field. All service providers, terrestrial or satellite, should meet the same obligations,” the expert mentioned.
Tipnis added context to the telcos’ concerns, stating that there’s a dichotomy. Telcos paid for spectrum via auctions, expecting long-term exclusivity, but satellite players could receive allocation without auctions.
Who Wins the Digital Divide?
Despite rapid growth, India’s rural internet penetration remains a challenge. About 70% of rural households lack reliable internet access, a gap that satellite connectivity is uniquely positioned to fill.
The government’s National Broadband Mission aims to extend affordable broadband to all corners of the country. Satellite internet providers, including Airtel and Starlink, are expected to complement terrestrial networks by covering remote regions that remain dark or unconnected.
Bharti Enterprises has already launched hundreds of satellites and operates in multiple countries. Its satellite internet services are expected to offer high-speed connectivity in underserved hilly terrains, forest zones, and coastal regions—areas where fibre and mobile networks struggle to reach. However, it awaits government approval for the allocation of satellite spectrum before rolling out commercial services.
Moreover, fixed wireless access (FWA) services leveraging 5G, such as JioAirFiber and Airtel Xstream, are expanding rapidly. These services provide fibre-like speeds without the cost of laying cables, competing directly with satellite internet in semi-urban and rural markets.
Starlink’s longer-term success in India may depend on launching direct-to-cell services, currently in beta in other countries. These services allow satellites to communicate directly with mobile phones. However, this will require complex regulatory approvals, ground station setups, and cooperation with local telecom operators.
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