Starlink is reportedly set to offer a moderate price in India. The news comes as the Elon Musk-headed satellite ISP prepares to launch its much-anticipated broadband service in the South Asian country. According to The Economic Times, Starlink could launch unlimited data plans at an introductory price of below $10, which is INR 840 per month, which is highly affordable and appealing on the surface.
Industry experts have argued that Starlink will approach its price in the budget segment despite high spectrum costs to immediately grow its user base. The company is aiming at attracting a 10 million user base in India.
“The strategy is to price services affordably—below $10—to encourage adoption and distribute fixed costs across a broader customer base,” Ashwinder Sethi, Partner at global TMT consultancy Analysys Mason, said.
Also: Which airline companies use Starlink in-flight internet?
Starlink dish price in India
Starlink internet requires a dish to receive signals, which raises the initial costs for customers. Globally, Starlink infra costs $250, which is almost INR 21,300 to $38,0, which is about INR 32,40,0, which is a huge sum to pay for Indian customers if it’s set so.
But Starlink may keep its other hardware costs low to lure in more customers in the initial phase to ward off any market negativity.
Market competition
India is a huge market for the telecom players. Starlink, a US company, will try to seize its opportunities with strategic pricing. It faces stiff competition from Airtel and Jio in bringing in customers, which are also launching satellite service soon. Therefore, Musk could play diplomatic with the price of Starlink in India. See: SpaceX and Jio, Airtel sign up to bring Starlink internet in India
However, the US-based satellite company may only complement connectivity growth instead of competing with existing telecom operators. This is because satellite services prove useful mostly in areas where traditional mobile networks and fiber internet are not available.
The company has a constellation of 7,000 satellites in low Earth orbit. In regions with no to weak mobile network infrastructures, Starlink could remarkably bridge the connectivity gap. But it’s also a price-sensitive market, so lots will also depend on how Starlink will price its services for Indian customers.
Starlink is awaiting the final approval from India’s Department of Telecommunications to operate its satellite internet in India.