Starlink may not be an immediate threat to Jio, Airtel if it enters Indian market

They have actually prompted the telecom regulator to permit just auctioned satellite range for servicing city or ‘retail’ consumers, saying Starlink, Amazon and others have a clear strategy to supply satellite broadband solutions in city locations and ultimately complete with them straight. The satellite companies, though, have actually declined the telcos’ phone call for auctioning satellite spectrum, competing that considering that satcom airwaves are a shared source, they can not be auctioned.

“We are not concerned concerning Starlink’s potential prices of satellite broadband in India, and exactly how they compare vs earthbound broadband rates. Our only contention is that there must be a level playing field in between telcos and satcos for accessing beneficial satellite spectrum, and we are trusting the Indian government to settle a fair satellite spectrum appropriation and pricing policy …,” a senior exec at one of the Big 3 telcos informed ET.

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A fight is already underway throwing worldwide satellite companies such as Starlink and Jeff Bezos-led Amazon Kuiper against India’s leading telcos Jio, Airtel and Vodafone Idea (Vi) over the appropriation mode of satellite spectrum and its pricing to sustain broadband-from-space services.

Starlink is not likely to pose an immediate danger to Reliance Jio and Bharti Airtel if it gets in the Indian market as the Elon Musk-owned company’s average monthly global satellite broadband tariffs are virtually four times pricier than dealt with broadband rates of India’s leading 2 telcos, claimed experts and industry professionals.

Experts and industry professionals think that Starlink’s access right into the Indian market is not likely to position a prompt hazard to Dependence Jio and Bharti Airtel. Due to the fact that Starlink’s international satellite broadband tolls are substantially higher than the fixed broadband rates provided by the Indian telecom titans, this is.

Experts and market execs anticipate satellite broadband to continue to be a specific niche interactions solution in India in the tool term because of high hardware price at consumer sites, and expanding hunger for even more economical 5G-based dealt with wireless access (FWA) services. Based on firm information, Jio and Airtel market month-to-month FWA services at $12.6 and $11.2, specifically, while their monthly set broadband pack rates go to $9.8 and $11.2 specifically.

It claimed satellite-based broadband services from Starlink and others will take a very long time to impact the earthbound network services of Jio and Airtel, who additionally have their own satcom plans. “Customer experience of satellite broadband vs taken care of broadband is comparable, yet it stays a premium solution,” the broker agent claimed.

“India’s fixed broadband price-points (offered by Jio and Airtel) at around $10-13 a month are 1/4th of the ordinary global Starlink rate plans of $40-50 a month, and additionally included free hardware and zero installment costs,” Axis Funding claimed in a study note, a duplicate of which was seen by ET.

India’s top telcos are seeking equivalent therapy of telecom and satcom solutions. They have actually prompted the telecommunications regulator to allow just auctioned satellite spectrum for servicing metropolitan or ‘retail’ customers, stating Starlink, Amazon and others have a clear plan to provide satellite broadband solutions in urban areas and ultimately complete with them directly. The satellite firms, however, have declined the telcos’ telephone call for auctioning satellite range, contending that because satcom airwaves are a common source, they can not be auctioned.