Elon Musk's Starlink set to take on Mukesh Ambani's Jio, Sunil Bharti Mittal's Airtel; will target low-network...

Elon Musk is eyeing to dominate the satellite broadband sector globally. The world’s richest man has planned to bring his satellite internet service company, Starlink, to India, posing a threat to  Indian telecom giants like Mukesh Ambani’s Reliance Jio and Sunil Bharti Mittal’s Airtel.  The Central government is ready to grant a license to the billionaire’s satellite internet service provider to operate after compliance with all the rules.

Satellite-based internet services have not yet started in India. So far, the Centre has issued a license to Bharti Group’s OneWeb and Jio Satellite Communications for the services. The services will reportedly begin after the Telecom Regulatory Authority of India (TRAI) announces the norms for satellite service providers after consulting with stakeholders. 

The entry of Starlink in India is expected to challenge the dominance of local providers. The firm uses its low-earth orbit satellites to provide high-speed broadband services. The entity is targeting to provide much-needed services to remote areas where conventional telecom services tend to be costly and have limited access.  The Indian broadband market would shake up if Starlink plans to aggressively undercut prices to take on Reliance Jio and Bharti Airtel. This impending price war will likely force local providers to reassess their pricing strategies, potentially leading to more affordable broadband options for Indian consumers.

However, Starlink is unlikely to immediately disrupt the dominance of established Indian telecom giants, according to industry experts. A research note by Axis Capital highlighted that while Jio and Airtel's broadband services cost between $10-13 per month (Rs 843-1,096), Starlink's average monthly tariff ranges from $40-50 (Rs 3,373-4,217). This significant price difference makes Starlink's service approximately four times more expensive than its Indian counterparts. 

Amid mounting excitement about the satellite network, the government has made a significant announcement regarding satellite spectrum allocation. In a recent Lok Sabha session, the Union Minister of State for Communications stated that the spectrum allocation will undergo standard administrative procedures and may even be assigned without an auction process. As per the new Telecom Act, spectrum allocation decisions will prioritize the interests of Indian citizens, balancing economic and technical factors to ensure the best possible allocation.