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Starlink in India – Opportunity or Risk for India? | TDG Explainer

Bharti Airtel has teamed up with Elon Musk's SpaceX to introduce Starlink's satellite internet service in India, aiming to provide uninterrupted high-speed broadband in remote regions. While this promises digital transformation, concerns over data security and market impact linger.

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Starlink in India – Opportunity or Risk for India? | TDG Explainer

Imagine lightning-fast internet access anywhere—in the middle of the ocean, on isolated islands, in the middle of deserts, on mountains, or even in mid-air. With an open sky, Starlink’s satellite technology can provide seamless connectivity. Now, this game-changing service is coming to India.

Bharti Airtel on Tuesday said it has agreed with Elon Musk’s SpaceX to introduce Starlink’s satellite-based internet service in India. This comes close to a month after Musk had a meeting with Prime Minister Narendra Modi in Washington to talk about collaborations in space, mobility, technology, and innovation.

Just after a day, Bharti Airtel announces a similar collaboration, Reliance Jio said it will not only offer Starlink equipment in its retail outlets but will establish a mechanism to support customer service installation and activation.

In its agreement with Airtel, the company hopes to tap Starlink’s retail presence, business service expansion, and connectivity offerings for rural India’s underserved populations, schools, and healthcare facilities. SpaceX’s COO Gwynne Shotwell was all smiles about the tie-up, highlighting the “transformative effect” that Starlink can have on Indian consumers.

Starlink has been trying to venture into the Indian market since 2021. India has almost 100 crore telecom consumers, and there is an undeniable need for strong internet infrastructure. Despite great advancements, there are still a large number of rural areas with no stable broadband connection because fiber-optic cables and mobile towers are very costly and difficult to implement.

Starlink’s satellite technology can bridge the digital gap by providing high-speed connectivity between 25 Mbps and 220 Mbps, thus bringing internet access even to rural locations.

India today has 6,44,131 villages of which 6,15,836 have 4G mobile coverage. With the advent of Starlink, high-speed broadband could be available to the still unconnected parts of the country.

What Will Starlink Cost in India?

Though Starlink has not gone public with price details for India, earlier speculations indicate the service might amount to around Rs 1,58,000 in the inaugural year. Since the second year, the service could be lowered to around Rs 1,15,000.

For comparison, Bhutan’s Starlink’s ‘Residential Lite Plan’ is about Rs 3,000 per month with speeds of 23 Mbps and 100 Mbps, while the ‘Standard Residential Plan’ is available for Rs 4,200 per month with speeds of 25 Mbps to 220 Mbps.

Worldwide, Starlink operates in more than 110 countries worldwide. The prices differ substantially, with Kenya offering it at $10 monthly and the U.S. charging its plans at $120 monthly.

India’s Growing Internet Infrastructure

India has witnessed explosive growth in internet penetration in the last decade. Government statistics indicate that internet connections have jumped from 25 crore in 2014 to more than 96 crore in 2024—a staggering 285.53% growth. Broadband connections alone have increased by 1,452%, from 6 crore in 2014 to 94 crore in 2024.

India has also witnessed the quickest 5G rollout globally, with more than 4.62 lakh Base Transceiver Stations (BTS) put on the ground in 779 districts. With Starlink’s arrival, this growth is likely to speed up. Despite the optimism, the government of India has instituted tough regulations that need to be followed by Starlink before offering services.

One of the key requirements is data sovereignty. The Indian government requires that all user data, such as browsing history and personal information, be processed and stored within India’s geographical boundaries. This prevents sensitive information from being routed through foreign servers.

Local Internet Traffic Routing

Another fundamental requirement is that all internet traffic which travels over Indian airspace or territorial waters has to be routed through an onshore gateway. This requirement is mostly important for controlling key communications.

The Ministry of Telecommunications has also made it a requirement that Starlink does not have investors or partners from nations sharing a border with India, like Pakistan or China. The Indian government had already prevented Chinese telecoms giant Huawei from the 5G deployment because of concerns over national security. As much precaution is being taken with Starlink.

Security Issues Because of U.S. Connection

A Delhi-based think tank expressed concern over the close relationship Starlink has with the U.S. government. The parent entity of Starlink, SpaceX, holds a $1.8 billion contract with the National Reconnaissance Office as part of the Starshield program to construct spy satellites for the use of the U.S. military.

This has created speculations regarding whether Starlink might provide U.S. agencies access to Indian user information without the oversight of the Indian government. Given America’s history of surveillance programmes such as the Foreign Intelligence Surveillance Act (FISA), these speculations are not baseless.

Would Starlink Disrupt India’s Telecom Market?

While Starlink’s arrival offers thrilling possibilities, it may also be challenging for India’s telecom sector and satellite communications ecosystem.

India has heavily invested in the growth of indigenous space technology by agencies such as the Indian Space Research Organisation (ISRO), Antrix, and NewSpace India Limited (NSIL). If Starlink takes over the market, indigenous innovations and telecommunication giants like Jio, Airtel, and BSNL might be hard to compete with.

The economic effect could be enormous. If Starlink only wins 10% of India’s untapped market, it will earn $34 billion a year—revenue that may otherwise remain in the Indian economy.

Even nations like Taiwan have already prepared for contingencies. Despite its dependency on the U.S., Taiwan refused to issue a license to Starlink, citing Musk’s business relationships with China. Instead, Taiwan is spending $1.3 billion to establish its government-operated satellite network.

Starlink’s Technological Edge

Starlink is not the initial provider of satellite internet. Some competitors, including Viasat, HughesNet, and Amazon’s Project Kuiper, have already been around for years. The innovative method of Starlink provides a differentiation factor.

Rather than using a handful of huge satellites, Starlink employs thousands of small satellites in low-Earth orbit (LEO). These satellites, ranging from 200 km to 2,000 km above Earth, communicate through laser links, cutting reliance on ground-based infrastructure and limiting latency.

As it stands, more than half of all LEO satellites in orbit are owned by Starlink, providing it with a huge market lead over other players. Though establishing such an infrastructure is tricky and expensive, Starlink has already made it big in this sector.

The Road Ahead: A Boost for India’s Satellite Industry?

If Starlink manages to overcome regulatory challenges, India may see a new generation of high-speed, low-cost internet throughout the nation. This would enhance digital access, augment education possibilities, and ensure better communication during emergencies.

Meanwhile, Starlink’s arrival will also hasten India’s investment in LEO satellite technology and indigenous satellite internet solutions, making it a strong global player in space communications.

Though Starlink has huge prospects, controversy rages on with regard to regulatory compliance, security concerns, and economic implications. Whether India opts for Starlink in its totality or looks towards indigenous means is yet to be seen.