How Will Elon Musk's Starlink Help Indian Internet Users?

17-03-2025

In march 2025, Elon Musk's SpaceX announced that they will soon launch its Starlink satellite internet service in India.
The country’s two largest telecom companies, Bharti Airtel and Reliance Jio, have signed agreements with SpaceX to offer satellite broadband services.
Coverage in 125 Countries: Starlink currently provides internet services in over 125 markets around the world.
Ukraine has heavily relied on Starlink for its internet connectivity, especially during times of crisis.
Starlink has been waiting since 2022 to get the necessary licenses to operate in India.
The approval has been delayed for reasons, including national security concerns.

What is Starlink?

Starlink is a satellite internet constellation operated by Starlink Services, a division of SpaceX, aimed at providing high-speed internet even in remote and underserved areas.
It is world's first and largest satellite constellation using a low Earth orbit , which allows for faster internet connections compared to traditional satellite systems.
Instead of using a couple of large satellites, Starlink uses thousands of small satellites.
These small satellite known as CubeSats -- miniature satellites

Starlink vs. Traditional Telecom and Broadband Networks

Traditional Telecom Networks rely on:
1. Fibre-optic cables
2. Digital Subscriber Lines (DSL)
3. Cellular towers
4. These infrastructures are limited to urban and suburban areas.
Starlink operates using LEO satellites, which can provide internet access in remote and difficult-to-reach areas (e.g., rural villages, mountainous regions, offshore locations) where traditional networks are impractical or too expensive.

Starlink vs. Traditional Satellite Networks

Traditional satellite internet uses High Earth Orbit (HEO) or geostationary satellites, which are positioned 30,000 km above Earth.
LEO Satellites:
1. Orbit at much lower altitudes (200–2,000 km).
2. Advantages:
  1. Lower latency: Shorter distance means less delay, offering faster and more responsive connections.
  2. Better efficiency: Less signal loss, more reliable communication, and smaller, less power-hungry antennas.

How Starlink Will Help Indian Users:

The expert explained that Starlink will be key to connecting remote areas where traditional internet services haven’t reached or where the connection is very slow.
Satellite internet will be available wherever there’s an open space, without needing wires or towers.
Starlink uses satellites in low Earth orbit to provide high-speed internet to places that are hard to reach by conventional methods.
This will help improve internet access for many people, especially in rural or isolated locations.
Airline Connectivity: Once launched, Starlink will also offer internet services on domestic flights.
This is already a service in many countries outside India, and it will soon be available to Indian travelers as well.
The expert mentioned that while the technology is promising, there could be occasional failures in hardware or technology, but such issues will be rare.

Significance of Starlink's Deals with Airtel and Jio:

Reliance Jio, the largest telecom operator in India, will sell Starlink equipment in its retail stores, providing a wide distribution network for the service.
Similarly, Bharti Airtel, India’s 2nd-largest telecom operator, has also partnered with Starlink to offer the service.
Government Approval Needed: Both Airtel & Jio’s partnerships with Starlink depend on government approval for the service to operate in India.
Once the government gives its approval, the service will be available to the public.

How Starlink Will Initially Be Used:

B2B Services: Initially, Starlink's satellite broadband will likely be used for business-to-business (B2B) services, such as for enterprises, factories, and industries in sectors like education and health.
The expert mentioned that the service could be expensive at first, though the pricing will depend on subsidies and government support.
It is expected that Jio and Airtel might offer free trials for a period when the service launches to attract consumers.

Drawbacks of Starlink

High cost: The deployment and operational costs of LEO satellites can lead to premium pricing and limited data plans for consumers.
Scalability issues: Expanding the network to accommodate a larger user base without sacrificing performance remains a challenge.
Weather interference: Satellite signals can be disrupted by weather conditions such as heavy rain or storms.
Higher latency in urban areas: In cities with fiber-optic infrastructure, Starlink may experience higher latency and lower capacity, making it less competitive compared to terrestrial broadband.

Can Satellite Internet End the Digital Divide?

91% of Indians Believe 'Yes'
India is about to experience a digital revolution, and satellite internet is being seen as a key to making this happen.
A recent survey by LocalCircles shows that 91% of people believe that satellite internet will be a game-changer, especially in areas where traditional internet networks don’t reach.

Growth of the Satellite Internet Market in India

India's share in the global satellite internet market is small but growing quickly:
In 2022, India made up just 3% of the global satellite internet market, which was valued at $3 billion.
By 2030, India’s market for satellite broadband is expected to reach $1.9 billion, growing at a rate of 36% per year.
Currently, satellite internet in India mostly serves businesses (for rural connectivity, disaster response, and company-to-company communication).
But with increasing demand and new partnerships, the market is set to change significantly.

Do you know ?

As of May 2024, India has a total telephone subscriber base of 1,203.69 million. The tele-density for rural subscribers has reached 59.59%.
Wireless Data Usage Growth: The total volume of wireless data usage has increased more than 10 times, from 4,206 petabytes in Q1, FY18 to 47,629 petabytes in Q2, FY24.
Data Consumption: India is one of the biggest consumers of data globally. According to TRAI, the average wireless data usage per subscriber increased from 61.66 MB/month in March 2014 to 19.47 GB/month in December 2023.

Attractive Opportunities

5G Subscriptions: By 2026, India's 5G subscriptions are expected to reach 350 million, accounting for 27% of all mobile subscriptions.
Mobile Phone Exports: The value of mobile phone exports in FY24 saw an increase of 42%, reaching US$ 15.6 billion.
Skilled Workforce for 5G: By 2025, India will require approximately 22 million skilled workers in fields related to 5G technologies, including IoT, AI, robotics, and cloud computing.
Global Rankings: India ranks 2nd in terms of International Mobile Broadband Internet Traffic and International Internet Bandwidth.

Policy Support

Production-Linked Incentive (PLI) Scheme: In December 2022, the Union Cabinet approved a Rs. 12,195 crore (US$ 1.65 billion) PLI scheme for telecom & networking products under the Department of Telecom.
- 42 companies have committed Rs. 4,115 crore (US$ 502.95 million), including 28 MSMEs and 14 Non-MSMEs (both domestic and global).
6G Development: The Department of Telecommunications (DoT) has formed a 6G innovation group to drive the development of 6G technology.

Increasing Investments and Government initiatives :

Union Budget 2024-25: The Department of Telecommunications and IT was allocated Rs. 116,342 crore (US$ 13.98 billion).
FDI Inflow: The telecom sector saw FDI inflows of US$ 39.32 billion between April 2000 and March 2024.
PLI for Electronics Manufacturing: The PLI scheme for Large Scale Electronics Manufacturing has attracted about Rs. 4,700 crore (US$ 569.49 million) in investments as of September 2022
PM-WANI: RailTel launched PM-WANI, providing public Wi-Fi at 100 railway stations with 2,384 hotspots.
Telecom Technology Development Fund (TTDF): Launched by USOF on October 1, 2022.
Fiber Connectivity: 5,84,747 km of fiber laid, connecting 1,87,245 Gram Panchayats by July 2022.
5G Launch: PM Modi launched 5G services on October 1, 2022.
Rural Internet Growth: 200% increase in rural internet subscriptions from 2015 to 2021.
6G Development: DoT created a 6G innovation group.
Quantum Communication Lab: C-DOT inaugurated the Quantum Key Distribution (QKD) solution in October 2021.
FDI Cap: Increased to 100% for telecom infrastructure in October 2021.

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