Billionaire Elon Musk's satellite communication services provider, Starlink, can only have 2 million connections in India, stated Union Minister Pemmasani Chandra Sekhar on Monday. He downplayed any threat to state-run BSNL and other telecom players. The Minister of State for Telecom made these remarks on the sidelines of a BSNL review meeting.
"Starlink can have only 2 million customers in India and offer up to 200 Mbps speed. That won't affect telecom services," the minister said.
Satcom services are expected to target rural and remote areas where BSNL has a significant presence. He added that the upfront cost for satcom services will be too high, and the monthly cost may be around Rs 3,000.
The minister confirmed that the BSNL 4G rollout is complete, and there are no immediate plans to increase tariffs. "We want market first. There are no tariff hikes planned".
Starlink license
India's space regulator, the Indian National Space Authorization and Promotion Centre (INSPACe), has officially issued a license to Starlink. The license enables the company to provide space-based internet services within the country. This authorisation allows Starlink Satellite Communications to utilise the capacity of its Starlink Gen1 Constellation over Indian territory, according to the regulator's website.
The license is valid for a period of five years. Currently, the only remaining steps before launching the satellite internet service are to finalise the spectrum allocation fees and regulations from the Department of Telecom.
TRAI recommendation
The Telecom Regulatory Authority of India (TRAI) has proposed a regulatory framework stipulating that providers of satellite internet services, including entities such as Starlink, should remit 4 percent of their revenue as fees to the government. This proposed fee represents an increase compared to the expectations of these service providers.
For companies offering satellite internet services in urban areas, this directive translates to an additional financial burden of approximately Rs 500 per subscriber annually. It is noteworthy that no supplementary fees will be imposed on services rendered in rural regions, thereby distinguishing the economic implications of this proposal based on geographic service areas.
