Why Starlink Might Not Be a Big Issue for Airtel and Jio in India

Elon Musk’s Starlink is set to join the Indian broadband space, but analysts say it will not pose a significant threat to India’s leading telecom titans Reliance Jio and Bharti Airtel. While Starlink’s satellite-based internet services may improve connectivity in rural regions, its relatively higher prices and data caps will not disrupt the dominance of Jio and Airtel in urban and mainstream segments. 

A recent study by JM Financial highlights the major reasons why Starlink’s impact will be minimal. Here’s a closer look at how Reliance Jio and Airtel are poised to maintain their dominance even with Starlink’s arrival. 

Competitive Pricing Benefits Jio and Airtel One of the biggest advantages Indian telecom players have over Starlink is pricing. Jio and Airtel offer home broadband plans ranging from as little as ₹400 to ₹600 per month. Even their premium plans with 1 Gbps internet speed and free subscriptions to OTT platforms cost between ₹3,500 and ₹4,000 per month. 

In contrast, Starlink’s pricing globally is significantly higher. Monthly subscriptions range between $10 and $500 (₹830 to ₹41,500). Additionally, the one-time hardware cost ranges from $250 to $380 (₹20,700 to ₹31,500). With such a drastic price difference, Starlink is unlikely to attract price-sensitive consumers in India, especially in urban areas where Jio and Airtel provide affordable and reliable broadband. 

Data Limits vs. Unlimited Plans Another drawback for Starlink is its data limits. Reliance Jio and Airtel provide unlimited data in most of their broadband plans, ensuring seamless internet use for work, gaming, and streaming. On the other hand, Starlink imposes data caps, which could frustrate users with high data consumption. Given that affordable unlimited data is the norm in India, Starlink’s restricted data plans are unlikely to gain traction. 

Starlink’s Contribution to Rural Growth While Starlink might struggle to compete in urban areas, it has the potential to enhance rural connectivity. Many rural and underserved regions in India lack adequate broadband infrastructure. Starlink’s satellite internet services could bridge this gap, providing high-speed internet to areas where Jio and Airtel’s fiber networks are absent. This complementary role positions Starlink as a potential business partner rather than a direct competitor. 

Alliance with Indian Telecom Giants To expand rural connectivity, Reliance Platforms and Bharti Airtel have partnered with SpaceX to support Starlink’s services in India. They aim to leverage Jio’s and Airtel’s extensive point-of-sale networks to retail Starlink’s broadband hardware. The collaboration is expected to facilitate internet access for rural schools, hospitals, and enterprises. However, these initiatives are awaiting regulatory approval, delaying Starlink’s official market entry. 

Technical Challenges for Starlink’s Mobile Services Starlink has conducted trials of its direct-to-mobile satellite services globally, but experts believe this technology will face challenges in India. Effective smartphone connectivity via satellites requires robust power supplies and advanced antenna systems. Moreover, Starlink relies on Indian telecom providers for 4G/LTE spectrum access, preventing it from operating independently. These technical limitations reduce the likelihood of Starlink competing directly with India’s established mobile networks. 

Limited Financial Impact on Jio and Airtel Even if Starlink expands in India, its financial impact on Jio and Airtel is expected to be minimal. Both companies have already entered the satellite broadband sector: 

• Bharti Airtel has partnered with Eutelsat OneWeb.
• Reliance Jio has collaborated with SES through Orbit Connect India.

These ventures are progressing steadily with regulatory approvals, ensuring Jio and Airtel remain key players in the satellite broadband domain. 

Starlink’s Strength Lies in Connectivity, Not Competition While Starlink operates a massive constellation of over 6,400 low-Earth orbit (LEO) satellites, its primary strength is enhancing connectivity rather than directly competing in India’s broadband market. By leveraging its satellite network, Starlink can assist Indian telecom providers in expanding internet access in rural areas without undermining Jio and Airtel’s dominance. 

Conclusion Although Starlink’s entry into India has garnered interest, its high costs, data caps, and technical challenges make it unlikely to challenge the supremacy of Reliance Jio and Bharti Airtel. Instead, Starlink’s role will be to bridge connectivity gaps in rural and underserved areas, complementing India’s leading telecom players. As Jio and Airtel continue to expand their fiber networks and improve service quality, they are well-positioned to maintain their leadership in India’s broadband market.