Starlink's Limited Impact on India's Telecom Sector, Says Minister

Starlink's User Cap and Speed Limitations

Pemmasani Chandra Sekhar, the Union Minister of State for Communications, announced that Elon Musk's satellite internet service, Starlink, will be restricted to 2 million users in India, with a maximum speed of 200 Mbps. This declaration comes amid discussions regarding the potential influence of Starlink's satellite communication on India's existing telecom landscape.

During a review meeting with Bharat Sanchar Nigam Limited (BSNL), Sekhar stated, "Starlink can only accommodate 2 million customers in India and will provide speeds up to 200 Mbps. This will not disrupt telecom services." His comments aimed to reassure stakeholders, particularly those from state-owned BSNL, about the limited threat posed by Starlink.

Service Charges and Market Position

Officials from the government clarified that the cap on Starlink's connections is due to the company's current capacity rather than any regulatory limitations. Sekhar also highlighted that the high service fees would restrict Starlink's adoption. He mentioned, "The initial costs for satellite communication services will be quite steep, with monthly fees potentially around ₹3,000."

Given these pricing factors, Starlink is expected to cater primarily to rural and remote regions lacking traditional broadband services, where BSNL already has a significant presence. The government is actively working on regulations for satellite communication spectrum allocation to ensure effective oversight.

BSNL's Strategy Amid Competition

At the same meeting, Sekhar revealed that BSNL has successfully completed its nationwide 4G rollout and plans to prioritize increasing its market share rather than raising tariffs. He stated, "Our focus is on capturing the market first. There are no plans for tariff hikes," indicating BSNL's strategy to maintain affordable pricing in areas where they may face competition from satellite communication services.