Starlink eyes India launch at Rs 2,500-3,500, analysts say satcom won't disrupt telcos: Report

Analysts said Starlink's immediate goal in India is to establish a foothold rather than push for profitability.

Starlink is preparing to launch its satellite communication services in India at an estimated Rs 2,500-3,500 per month for retail customers, according to a report by The Economic Times (ET). The Elon Musk-owned company is also expected to extend its services across sectors such as maritime, aviation, enterprise, and retail, ET reported, citing people aware of the matter.

This development follows Starlink's brief display of a Rs 8,600 per month pricing preview, which appeared on its India website before being removed within hours. The company later described the displayed rate as a technical glitch, ET noted. Industry executives told ET the previewed pricing was too steep for the price-sensitive Indian market and would have made the service unviable. They added that Starlink is likely to announce official pricing only after receiving full regulatory approval.

As per ET, Starlink has already secured key permissions, including the Global Mobile Personal Communication by Satellite (GMPCS) licence, a VSAT licence, and authorisation for in-flight and maritime connectivity. However, the government is yet to allocate spectrum for commercial rollout, and some security-related clearances remain pending.

ET also reported that the company has strengthened its India team by appointing a country head and additional finance personnel. Lauren Dreyer, Starlink's Vice President, will continue overseeing India operations and partnerships with central and state governments, according to people cited by ET. SpaceX did not respond to ET's queries on pricing or appointments.

Analysts quoted by ET said Starlink's immediate goal in India is to establish a foothold rather than push for profitability. They noted that as the satellite constellation becomes denser, Starlink's unit economics will improve. However, they cautioned that Starlink cannot directly compete with telecom operators due to their significantly lower pricing.

According to ET, India's telecom landscape-where 4G and 5G cover over 90% of the country-is very different from the US market, where Starlink has gained traction because 20-25% of areas lack reliable terrestrial connectivity. Sector analysts told ET that satellite broadband in India is expected to function as a complementary service, not a disruptive one.

ET cited JM Financial in noting that entry-level fiber and fixed wireless access (FWA) plans from Reliance Jio and Bharti Airtel cost Rs 500-1,000 per month, whereas Starlink's plans may be 3-5 times more expensive, further reinforcing the complementary nature of its services.

Earlier this year, on March 12, Jio Platforms Ltd announced a partnership with Elon Musk's SpaceX to bring Starlink's internet services to India. This move came a day after rival Bharti Airtel struck a similar agreement.

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