India may soon get satellite data plans priced below ₹840 per month

Starlink and other satcom firms may launch services in India with unlimited data plans priced under ₹840/month, aiming rapid user growth despite high spectrum and licence fees

Satellite communication firms, including Elon Musk’s Starlink, are expected to introduce their services in India with promotional unlimited data plans priced below $10 (approximately ₹840) per month, according to a report by The Economic Times. 

 

These companies aim to rapidly expand their user base, potentially reaching up to 10 million customers in the mid-to-long term. This would help offset the steep spectrum costs through economies of scale.

 

High spectrum fees likely not a major barrier for Starlink

 

The Telecom Regulatory Authority of India (Trai) has recommended a monthly urban user charge of ₹500, which makes satellite communication spectrum more expensive than traditional terrestrial services. Despite this, analysts believe the premium pricing will not significantly hinder well-funded players like Starlink from competing effectively in India’s urban markets, the news report said.

 

The news report quoted Ashwinder Sethi, partner at global TMT consulting firm Analysys Mason, as saying, “Despite the high spectrum charges and license fees, satcom companies are expected to launch at low price point in India — likely sub-$10 — so as to achieve good take up and amortise their fixed costs (upfront capex incurred) over a larger customer base."

 

Regulatory framework imposes revenue share, licence fees

 

Trai’s recommendations include a 4 per cent levy on adjusted gross revenue (AGR) with a minimum annual fee of ₹3,500 per MHz of spectrum. Additionally, satellite communication providers will be required to pay an 8 per cent licence fee for offering commercial services. These proposals await final government approval before implementation.   

 

  Despite the promising price points, analysts warn that limited satellite capacity may restrict Starlink’s ability to rapidly grow its Indian subscriber base. According to IIFL Research, Starlink’s current constellation of 7,000 satellites supports around 4 million users globally. Even if the fleet expands to 18,000 satellites, it would only be capable of servicing about 1.5 million Indian customers by the financial year 2030, the report said.

 

“Capacity constraints could prove to be a challenge in terms of subscriber ramp-up and blunt the effectiveness of low pricing as a tool for subscriber acquisition,” noted IIFL Research. The report further highlighted that Starlink has previously paused subscriber additions in parts of the US and Africa due to similar capacity limitations.

 

IIFL’s analysis factors in that the share of satellites covering India at any given time would represent only around 0.7-0.8 per cent of the total global satellite count, roughly proportional to the country’s land area.

 

Currently, satellite-based broadband remains significantly more expensive than traditional home broadband services in India. JM Financial points out that satcom broadband costs are between 7 to 18 times higher than standard home internet plans.

 

Starlink awaits IN-SPACe clearance

 

Following the Department of Telecommunications’ approval for satellite communication services, Starlink now requires clearance from IN-SPACe to begin operations in India. Competitors Eutelsat OneWeb and Jio Satellite Communications secured similar licences in 2021 and 2022, respectively, but waited nearly two years for IN-SPACe approval.   

 

  IN-SPACe, established in June 2020 under the Department of Space, serves as a single-window agency to regulate and facilitate private sector participation in space activities. It oversees licensing, infrastructure sharing, and the promotion of space-based services for non-governmental entities.