Starlink’s Premium Service: Could It Raise the Cost of Internet in India?

As Elon Musk’s satellite communications company, Starlink, prepares to enter the Indian market, consumers are wondering how it will impact India’s broadband landscape. Starlink’s separate agreements with Jio and Bharti Airtel have come as a surprise to many, as these two Indian telecom giants were previously seen as obstacles to its launch in India.
India is currently one of the top three countries offering the cheapest internet. However, this could change with Starlink’s entry.
To understand why Starlink broadband could be more expensive, it’s important to grasp the technology behind it. Starlink operates using Low Earth Orbit (LEO) satellites, which are positioned much closer to Earth—typically between 200 km to 2,000 km—compared to traditional satellites that orbit at 35,000 km. Traditional broadband services, on the other hand, rely on fibre-optic cables, DSL lines, or cellular towers.
The low-altitude design of LEO satellites offers several key benefits: faster internet speeds, improved response times, enhanced reliability, and a broader reach. Because LEO satellites don’t rely on physical infrastructure, they can provide connectivity to remote areas that fibre-optic cables or towers can't reach.
However, this advanced technology comes with its challenges. Each LEO satellite covers a smaller area, and maintaining a consistent network requires a vast constellation of satellites. This network demands significant investment and complex ground infrastructure, making the cost of Starlink broadband higher than traditional internet services.
According to reports, the upfront cost of the equipment exceeds $180 (₹15,700), which makes it less suitable for average consumers and more appropriate for businesses and MSMEs (Micro, Small, and Medium Enterprises) in remote areas.
It has also been reported that Starlink’s plans in Southeast Asia range from $45 to $100 (₹4,000-₹8,700), which is significantly higher than traditional broadband, positioning it as a more premium service. In comparison, Jio’s broadband plans start at ₹599 per month, while Airtel’s plans start at ₹499 per month.