Musk’s Starlink poses limited threat to local telecom giants: Report
Elon Musk-owned Starlink’s anticipated entry and upcoming satellite broadband services will not pose a major threat to Indian telecom giants such as Mukesh Ambani’s Jio and Rakesh Bharti Mittal’s Airtel, as their home broadband plans offer better pricing, higher speeds and unlimited data, a recent report has said.
The report by JM Financial, which was released on Saturday, said Starlink’s service will instead complement local telcos’ existing networks, helping to expand high-speed Internet access to remote and rural areas.
Drawing a comparison, the satellite Internet plans from Starlink and other satcom companies range between $10-$500 per month, with additional one-time hardware costs of $250-$380 while Indian telecom companies offer home broadband plans starting at just $5-$7 per month, with premium plans providing 1 Gbps speed and access to streaming services for around $47 per month.
While Starlink’s plans come with data caps, Jio and Airtel provide unlimited data.
“Given India’s price-sensitive market, Starlink’s higher costs and speed limitations make it less competitive for urban users,” the report said, while hoping that this would reinforce its role in serving rural and underserved regions rather than competing directly with Jio and Airtel’s Fiber and AirFiber broadband services.
The current agreement primarily focuses on distribution, while there is potential for future collaboration between Jio, Airtel and Starlink in direct-to-cell satellite services.
Starlink has already partnered with telecom companies like T-Mobile (US), Rogers (Canada), Optus (Australia) and KDDI (Japan) to provide satellite connectivity.
“Despite this, industry experts believe direct-to-cell satellite broadband is unlikely to disrupt India's wireless market due to several factors,” it said, while reasoning that the technology still faces technical challenges, such as difficulties in maintaining reliable smartphone connectivity due to power and antenna limitations.
It also pointed out that Starlink depends on telecom providers for access to 4G/LTE spectrum, making it reliant on existing networks. “Satellite Internet generally delivers slower and less reliable performance compared to fiber or traditional wireless services,” the report mentioned.
On selling Starlink’s equipment, the experts feel it may generate some revenue for Jio and Bharti, but it is not expected to significantly impact their overall earnings. “Both companies already have their own satellite broadband ventures — Bharti with Eutelsat OneWeb and Jio with SES (Orbit Connect India) — which are further along in securing regulatory approvals in India,” they opined.
However, Starlink’s large satellite network, with over 6,400 low-Earth orbit (LEO) satellites, gives it a capacity advantage. “Rather than competing with Indian telcos, this scale positions Starlink as a useful partner for expanding connectivity in hard-to-reach areas,” the report added.
Pertinently, Jio and Airtel have recently entered into agreements with SpaceX to distribute Starlink’s broadband services in India. According to these agreements, the telecom firms will sell Starlink’s equipment through their retail outlets, with Jio additionally providing installation and activation support. They will also offer Starlink’s services to businesses, schools and health centres in rural areas.
However, these agreements are subject to regulatory approval as SpaceX is yet to receive authorisation to sell Starlink services in India.
