Context:
Recently, Elon Musk’s SpaceX has tied up with telecom giants Reliance Jio and Bharti Airtel to bring high-speed satellite internet access to India.
More on the News
- The distribution pacts are a reversal from the telecom industry’s reluctance to quickly make the Starlink service available in India without auctions for the satellite airwaves.
- Jio and Airtel will help distribute these services through their extensive retail networks, targeting rural and remote areas.
- Experts believe that the collaboration aligns with Jio and Airtel’s existing business models and will not pose a significant threat to their core operations.
What is Starlink?
- Starlink is a satellite internet network run by Starlink Services, LLC, a subsidiary of SpaceX, an American aerospace company.
- Starlink is the world’s first and largest satellite constellation using over 7,000 low-earth orbit satellites.
- It provides internet access to users through ground terminals across almost all habitable areas of the planet.
- SpaceX (owned by Elon Musk) is already offering this service in around 40 countries.
- The service offers internet speeds of around 100 megabits per second, comparable to many home broadband connections.
- However, the latency (delay in data transmission) is higher than traditional wired broadband services, as the data must travel to and from the satellites.
- Satellites use ground stations on Earth, which are connected to the internet.
- These stations wirelessly communicate with the satellites above, ensuring that data is transmitted to and from the network.
How much does Starlink cost?
There are two costs associated with Starlink:
User terminal (Hardware):
- The residential kit in the U.S. costs $149, while the portable “roaming” kit costs $349.
- In India, with import duty, GST, and other charges, the hardware cost may range between ₹17,000 and ₹40,000, excluding shipping from the U.S.
Monthly Access fee:
- The residential and roaming plans in the U.S. range from $120-$165 per month.
- While the price in India is not confirmed they are expected to be similar since the cost of providing Starlink services is the same globally.
- In Bhutan, Starlink pricing ranges from 4,200 to 8,400 ngultrum (roughly equivalent to Indian Rupees), which may indicate the expected cost in India.
Additionally, a “mobile priority” plan is available at 21,000 ngultrums per month and offers priority access in case of network congestion.
Challenges for Starlink in India
High Cost of Satellite Spectrum: The cost of satellite spectrum in India presents a challenge for companies like Starlink.
Regulatory and Logistical Barriers: Several regulatory and logistical issues complicate the scalability of satellite internet services in India.
- SpaceX needs to obtain Global Mobile Personal Communications by Satellite (GMPCS) authorization under the Telecommunications Act, 2023 and secure security clearance from the Ministry of Home Affairs, with uncertainty over compliance and approvals.
Significance of the deal
- The deal helps deepen ties between the US and India, particularly in the tech sector. It strategically positions both countries ahead of China, which is developing its satellite networks.
- The partnership helps counter Chinese tech dominance in the Indo-Pacific region.
- The deal aims to enhance internet access in rural areas, not to compete with major telecom players like Jio and Airtel.
- The Starlink partnership is primarily aimed at providing internet access to underserved rural and remote areas in India, a market that is currently not fully served by traditional broadband.