The Telecom Regulatory Authority of India (TRAI) recently announced its recommendations regarding the pricing of spectrum for satellite-based internet services, positioning Starlink to launch its satellite services in the country. According to a report by ET, which cited analysts, the company is expected to introduce its services in India at a promotional price point of less than USD 10 (approximately Rs 840) per month for unlimited data plans. This strategy aims to rapidly expand the user base to as many as 10 million subscribers over the medium to long term, enabling providers to mitigate high capital and spectrum costs through economies of scale.
TRAI has suggested that operators, including Starlink, should pay a levy of 4 percent on their annual revenues. For those offering services in urban areas, an additional fee of Rs 500 per subscriber each year will be applicable, whereas no extra charge will be incurred for services in rural regions.
Ashwinder Sethi, a partner at the global TMT consulting firm Analysys Mason, noted that despite the high spectrum charges and license fees, satellite communication companies are expected to initiate services at a low price point in India—likely under USD 10—in order to ensure significant uptake and to amortize their fixed costs over a larger customer base.
However, IIFL Research mentioned in a report that capacity constraints could present a challenge for subscriber growth and may limit the effectiveness of low pricing as a strategy for customer acquisition. They referenced instances where Starlink had temporarily halted subscriber additions in certain regions of the US and Africa due to capacity issues.
Meanwhile, in Bangladesh, Starlink offers a monthly plan for internet service that costs 6,000 BDT, which is about Rs 4,200 in Indian money. To get started with Starlink, users also have to pay a one-time fee of 47,000 BDT, which is around Rs 33,000, for the necessary equipment. On top of that, there’s an extra charge of 2,800 BDT (around Rs 2,000) for handling and shipping. All these costs add up to nearly Rs 37,200 to begin using Starlink’s internet service.
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