Elon Musk’s Starlink is preparing to disrupt the Indian internet sector, creating potential challenges for Mukesh Ambani’s Reliance Jio and Sunil Mittal’s Airtel. With its satellite-based internet services, Starlink is set to introduce a new level of competition in the broadband market.
Starlink’s India launch: A potential game-changer
Starlink, Elon Musk's satellite internet service, has been making global strides. Reports suggest that the Indian government may soon issue licenses to Starlink after ensuring compliance with local regulations. If approved, Starlink will compete with Bharti Group’s OneWeb and Jio Satellite Communications, raising the stakes in the internet connectivity space.
Starlink vs Jio and Airtel: Who has the edge?
Currently, both Jio and Airtel operate ground-based AirFiber services:
- Jio AirFiber uses antennas to connect homes to nearby base stations and routers.
- Airtel Xstream AirFiber transmits signals from 5G towers to an antenna, and then to a Wi-Fi router.
In contrast, Starlink operates via satellites, eliminating the need for local base stations. Users install an antenna to receive signals directly from SpaceX satellites, ensuring uninterrupted connectivity, even in adverse weather conditions.
Will Starlink’s pricing work in India?
A report by Axis Capital highlights a key challenge: pricing.
- Current broadband tariffs for Jio and Airtel range between Rs 843 - Rs 1,096/month (USD 10 to USD 13).
- Starlink’s expected pricing is significantly higher at Rs 3,373 - Rs 4,217/month (USD 40 - USD 50), making it less affordable for the average Indian consumer.
What Did Piyush Goyal have to say about Starlink?
Union Minister Piyush Goyal recently clarified that no discussions about Starlink have taken place at the government level. He stated, “To my knowledge, there has been no conversation about Tesla or Starlink.”
The future of satellite internet in India
While satellite-based internet services are yet to take off in India, the government has already granted licenses to OneWeb and Jio Satellite Communications. If Starlink enters the market, it will increase competition and offer more connectivity solutions, especially in rural areas with limited infrastructure.
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