Akhilesh Tuteja, Partner at KPMG in India, highlighted the importance of this partnership, stating, “Unlike any other player who would come into the market, set up the network, and take time, this clearly gives a head start to Starlink to take an accelerated path very soon.” The partnership allows Jio and Airtel to market, sell, and install Starlink services across India, speeding up the adoption of satellite broadband.
Bridging India’s Digital Divide
India still has large gaps in internet connectivity, especially in rural areas where traditional broadband infrastructure is difficult to deploy. According to Tuteja, “Satellite technology allows us to reach every part of the Earth, and therefore every part of our country, which makes it transformational.” Unlike fibre broadband, which requires extensive groundwork, satellite broadband can provide instant connectivity by simply installing a dish and a router.
One major hurdle for Starlink is the cost. Satellite broadband requires specialised equipment, including a dish antenna and high-performance routers, making it more expensive than fibre broadband.
Varun Gupta, Senior Analyst at Counterpoint Research, acknowledged this issue, stating, “Yes, it could be higher because the cost of equipment is currently much higher compared to fibre broadband. However, it will be interesting to see how Jio and Airtel subsidise the cost.” With the potential for subsidies, similar to Jio’s strategy with fixed wireless access (FWA), pricing could become more competitive over time, Gupta added.
Impact on Indian Consumers
The arrival of Starlink will add to India’s growing list of broadband options, which already includes fibre and FWA. Gupta believes this will drive competition and benefit consumers. More choices mean better internet access for users, whether they are in urban or remote areas, he said.
To make Starlink more attractive, Jio and Airtel might bundle satellite broadband with other services, such as OTT platforms and hybrid set-top boxes. Gupta noted that this could make satellite broadband as competitive as fibre and FWA. This would give consumers a compelling new option, ensuring they get both connectivity and entertainment in one package.
While Starlink’s entry into India looks promising, it still faces regulatory hurdles. The Indian government has raised security concerns that need to be addressed before granting the necessary licenses. Additionally, approval from India’s space regulator, IN-SPACe, is still pending. However, with India and the US strengthening ties, the regulatory process might move faster than expected.
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