Starlink's satellite broadband poses limited threat to Indian telcos: Report
Globally, satellite internet plans from Starlink and other satcom companies range between USD 10-USD 500 per month, with additional one-time hardware costs of USD 250-USD 380.
ANI
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PHOTO: X
New Delhi, 15 MARCH
Starlink's
satellite broadband services are unlikely to pose a major threat to Indian
telecom giants Jio and Bharti Airtel, as their home broadband plans offer
better pricing, higher speeds, and unlimited data, according to JM Financial
report.
Instead, Starlink's service is expected to complement telcos' existing
networks, helping to expand high-speed internet access to remote and rural
areas.
Globally, satellite internet plans from Starlink and other satcom companies
range between USD 10-USD 500 per month, with additional one-time hardware costs
of USD 250-USD 380.
In contrast, Indian telecom companies offer home broadband plans starting at
just USD 5-USD 7 per month, with premium plans providing 1 Gbps speed and
access to streaming services for around USD 47 per month. Additionally, Starlink's
plans come with data caps, whereas Jio and Bharti provide unlimited data.
Given India's price-sensitive market, Starlink's higher costs and speed
limitations make it less competitive for urban users. This reinforces its role
in serving rural and underserved regions rather than competing directly with
Jio and Bharti's Fiber and AirFiber broadband services.
While the current agreement primarily focuses on distribution, there is
potential for future collaboration between Jio, Bharti, and Starlink in direct-to-cell
satellite services. Globally, Starlink has 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. Firstly,
the technology still faces technical challenges, such as difficulties in
maintaining reliable smartphone connectivity due to power and antenna
limitations.
Secondly, Starlink depends on telecom providers for access to 4G/LTE spectrum,
making it reliant on existing networks. Lastly, satellite internet generally
delivers slower and less reliable performance compared to fiber or traditional
wireless services.
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