Why Starlink won't be a threat to major telcos despite competitive monthly plans

Starlink may only be able to serve around 20 lakh connections across the country, said Pemmasani Chandra Sekhar, minister of state for communications and rural development

Satellite internet major Starlink is set to roll out its services in India at a monthly tariff of approximately Rs 3,000. However, the service comes with a significant hurdle — an upfront hardware or terminal cost of around Rs 30,000, making it an unlikely competitor to terrestrial telecom operators like Reliance Jio, Airtel and BSNL, particularly in a price-sensitive market, minister of state for communications and rural development, Pemmasani Chandra Sekhar said on July 28.

“Just like installing a DTH connection, each Starlink subscriber will require a standalone satellite dish, which costs roughly Rs 30,000 upfront. Monthly fees are also around Rs 3,000,” he said.

The department estimates that even at full capacity, Starlink may only be able to serve around 20 lakh connections across the country, with each offering up to 200 Mbps speeds. “Even if the demand exists, supply is constrained. Starlink can’t service everyone. For example, Delhi might get only around 50,000 to 60,000 connections at best,” the official added, ruling out mass market potential.

This essentially removes Starlink from the competitive landscape vis-à-vis mainstream telecom operators, especially in the consumer broadband and mobile segments. “

No telecom operator — BSNL included — is going to face competition from satellite broadband. The kind of customer who pays Rs 30,000 upfront and Rs 3,000 a month is not the typical BSNL or rural user,” the official explained.

The comments come as BSNL, the government-run telecom operator, is undergoing a significant turnaround, deploying over 1 lakh indigenous 4G towers and aiming for a 20–30 percent revenue growth in FY26.

While Starlink may find niche applications — such as remote government offices, research outposts, or inaccessible terrains — its use in regular village or household settings remains unlikely unless costs come down drastically or subsidies are introduced, analysts said.

Elon Musk’s Starlink has received the final regulatory clearance to begin commercial satellite broadband operations in India. On July 7, the Indian National Space Promotion and Authorisation Centre (IN-SPACe), the country’s space regulator, granted the company approval to operate, removing the last major hurdle before launch.

With IN-SPACe’s approval secured, Starlink must now acquire spectrum from the Department of Telecommunications (DoT), build ground infrastructure, and complete national security compliance through trials and testing. As part of its deployment strategy, the company plans to set up at least three gateway stations across India.

However, the DoT is yet to issue trial spectrum to facilitate Starlink’s security demonstrations—a necessary step before commercial rollout can begin.

Despite pending spectrum allocation, Starlink has already inked its first commercial deals with VSAT providers in India, signaling its intent to tap into the enterprise and government broadband markets. According to a recent Moneycontrol report, the company is actively laying the groundwork for monetisation in the B2B and B2G segments.

Sources also indicated that a direct-to-consumer launch could follow soon, with Starlink preparing to offer retail satellite connections via its website. Pricing strategies for the Indian market are still being finalised.

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.