Is Musk’s Starlink a dream too pricey for Bharat?

At nightfall on April 6, SpaceX’s Starlink project once again took flight over the California skyline with the launch of 21 more broadband satellites, sparking a glimmer of hope for an internet revolution in India. The successful deployment of these satellites would bring India’s telecom industry a step closer to providing high-speed, reliable internet coverage even in the country’s remote and underserved regions.While SpaceX CEO Elon Musk’s much-awaited India visit later this month may have hit a roadblock, the potential for high-speed internet access across the country’s vast and diverse terrains seems to be within reach, promising to be a game-changer for millions currently grappling with unreliable connectivity.Yet, as the dust settles over Musk’s visit, an important question emerges: Can Starlink’s premium satellite communication service address India’s connectivity challenges, particularly in rural areas? Or will it be another expensive satellite constellation in the sky catering to the privileged few?Cost of connectivityLaunched in May 2019, Starlink is a mega constellation of satellites built by SpaceX to deliver high-speed internet access to remote and underserved areas where laying fibre optic cables is costly or challenging.It utilises a network of thousands of small satellites orbiting earth at a much lower altitude of around 550km as against geostationary satellites’ 35,786km to achieve low latency of 25 milliseconds per km which is at par with that of fibre optic cables (FOC).Setting the service up in countries where Starlink has a presence costs a one-time equipment fee of $499 or more for the user terminal (dish), mounting tripod and Wi-Fi router. Additionally, there is a monthly subscription fee of $99-150 for the internet service.As per media reports, the company’s former India head revealed that in the first year the total cost for Starlink’s service in the country may amount to approximately ₹1.58 lakh, including the one-time purchase of the user equipment worth around ₹37,400. The monthly service fee is expected to be ₹7,425. From the second year onwards, the annual service cost will be around ₹1.15 lakh including tax. medium109978220In comparison, the initial installation cost for an FOC-based internet connection can range from ₹1,000 to ₹5,000, while monthly plans can start from ₹700 and go up to ₹10,000 or more depending on the speed and data limit.SpaceX has launched around 6,000 small low-earth-orbit satellites and plans to take the count to 34,000, establishing Starlink as the largest satcom service to provide broadband capabilities, including video calls and online gaming, even in the most remote locations of the world. Currently, the service is available only in certain regions of the US, UK, Canada and some European countries.In 2023, Reliance’s JioSpace Fibre said it will bring in an Indian version of the satellite-based internet service. In partnership with Luxembourg-based SES, Jio started rolling out the service on a trial basis last year in locations including Gir in Gujarat and Korba in Chhattisgarh.It is speculated that Jio may price its offering between ₹1,500 and ₹2,000 per month.Starlink’s pricing plans are likely to remain higher than the traditional options, at least initially, and affordability for rural users in the country will be a key factor in its success.Advantage FOCIndia is home to diverse and extreme weather conditions including heavy rains and snow which often disrupt internet signal. Additionally, the satellite constellation is still under development and technical issues can occur. In this context, FOC appears to be a better choice.Laying FOC requires significant upfront investment, but long-term costs are lower as compared to the expenses incurred in maintaining and replacing satellites. Additionally, FOC can provide high-speed internet access to remote areas that may not have a clear line-of-sight to satellites, making them a more accessible option. medium109978280As per reports, the nationwide coverage of FOCs between 2014 and 2019 roughly doubled to 1.4mn km. The Indian FOC market has witnessed impressive growth. As per estimates, it has clocked a compound annual growth rate of around 19.7% between 2019 and 2024, reaching a market value of $2.1bn as of 2024.RailTel Corporation, a public-sector undertaking, has been instrumental in building the FOC network in the country, especially in remote areas while government projects such as BharatNet (formerly National Optical Fibre Network) aim to connect gram panchayats with high-speed internet. This initiative, along with the Digital India programme, prioritises expanding the FOC infrastructure within the country.Competitive spaceIn India, Starlink faces additional competition from French satellite operator Eutelsat, OneWeb’s local subsidiary OneWeb India which is supported by Bharti Group, and Jio Satellite Communications which has access to the latest medium earth orbit satellite technology capable of offering gigabit, FOC-like service from the space.OneWeb has already begun trials after receiving authorisation from Indian National Space Promotion and Authorisation Centre (IN-SPACe) in November 2023 to launch commercial satellite broadband services in India, while Jio is awaiting the green signal. medium109978266Project Kuiper, the satellite communications division of Amazon, is also applying for a GMPCS (global mobile personal communication by satellite) licence in India. Despite being a late entrant, Starlink had applied for the GMPCS licence in November 2022 and had even opened pre-booking channels in India in 2021 but had to return around 5,000 booking advances as it was not a licensed entity in the country.In anticipation of Musk’s visit, the government had reportedly expedited Starlink’s licence approval process to clear regulatory hurdles.The final cutIndeed, Starlink has huge potential to revolutionise internet access in India. However, its success hinges on three salient factors:1. Overcoming affordability concerns.2. Ensuring resilience under extreme and diverse weather conditions.3. Gaining traction in a competitive landscape.Clearly, the race is on, and all eyes are on Starlink. Can it take the lead?