People of India are going to get satellite internet soon. Many satellite communications firms including Elon Musk’s Starlink are expected to start their services in India within a few days. According to a report in The Economic Times, these companies will release promotional unlimited data plans priced at less than $10 per month, i.e. about Rs 840. However, Starlink is awaiting approval from IN-SPACe to start services in India. The target of satellite communications companies including Starlink is to rapidly increase their user base. It can reach 10 million i.e. 1 crore customers in the mid-to-long term. This will help companies to recoup the heavy spectrum cost. Spectrum is expensive, but Starlink has no problem The Telecom Regulatory Authority of India (Trai) has recommended satellite communications companies to keep the monthly charge for urban users at ? 500. Which makes satellite communications spectrum more expensive than traditional terrestrial services. According to reports, experts believe that due to premium pricing, financially strong companies like Starlink will not have any problem competing with other companies in India’s urban market. Companies expected to launch plans at low prices Ashwinder Sethi, partner at global TMT consulting firm Analysis Mason, said, ‘Despite high spectrum fees and license fees, satcom companies including Starlink are expected to launch plans at low prices in India. These companies can launch their satellite data plans at a price of less than $ 10. This is so that companies can get a good response and their fixed cost (initial capex) can improve from a large customer base. TRAI charges revenue share and license fees from companies Capacity will prove to be a challenge for companies: IIFL According to IIFL Research, Starlink’s current group of 7,000 satellites provides service to about 4 million users globally. The report said that even if there are 18,000 satellites, Starlink will be able to provide services to only 1.5 million Indian customers by FY 2030. IIFL Research said, ‘Lack of capacity can prove to be a challenge in terms of increasing the number of customers. It can also reduce the effectiveness of low-cost tools to add customers. The report said that Starlink had previously stopped adding customers in parts of the US and Africa due to similar capacity limits.’ Satellite broadband is more expensive than home broadband in India IIFL’s analysis said that the share of satellites covering India at any given time will be only 0.7-0.8% of the total global satellite count, which is roughly proportional to the country’s total land area. Currently, satellite-based broadband is much more expensive than traditional home broadband services in India. JM Financial said that the cost of satcom broadband is 7 to 18 times more than standard home internet plans. Starlink awaits IN-SPACe approval How will internet reach you through satellites?
