India stands at a crucial juncture in its digital transformation. The current population of India is more than 1.4 million. Still, this country possesses the second-largest internet market in the world. However, according to recent reports, approximately 670 million people lack a reliable internet connection, which accounts for nearly 50% of the global population. The digital gap between urban and rural India is substantial, with geography, logistics, and other factors hindering the expansion of traditional broadband and cellular networks.
Starlink, SpaceX's rocket-powered satellite internet, comes to bridge the gap. Now the question is whether satellite internet is a real solution to India's digital divide, or does it play second fiddle to more established solutions? This article with compare and contrast Starlink with traditional broadband and mobile internet in the Indian setting, putting the pros and cons of every option to the fore.
The Starlink network possesses s a vast constellation of LEO satellites designed to beam high-speed internet with very low latency. It can reach almost anywhere on earth, even in regions that are considered remote and underserved by land broadband and mobile networks. While geostationary satellites reside at around 35,786 km and hence suffer from high latency, Starlink's LEO satellites hover at an altitude of nearly 550 km. Therefore, these satellites can be exploited for real-time applications like video conferencing, online education, and telemedicine.
One of the most attractive aspect of Starlink is probably the circumvention of the need for foundational terrestrial installation. Traditional broadband service is provided through fiber-optic cables, DSL, and cellular towers, which are costly. Moreover, they are hard to place in rural, mountainous, or heavily forested areas. Starlink needs the end-user terminal, which is a compact satellite dish that can be installed simply, with no underground wiring or complex setup. So, by design, the deployment of the system is quick and scalable. This way, thousands of people, almost overnight, can be connected in other already unserved regions.
Starlink has shown its capabilities across the globe, with examples like in Ukraine, where it provided resilient connectivity in their time of need. In India, it has great potential given its geographic scale of India. It can be easily accessible for millions of students and elderly citizens who live without internet service. Starlink can keep them digitally connected.
Industry experts believe that partnerships would allow Starlink to greatly reduce costs by working with large telecom operators such as Reliance Jio and Bharti Airtel. These collaborations potentially resulted in lower prices, around ₹3,000 per month, higher than mobile data, but presumably affordable to village clusters with possible subsidies.
Even with its potential, Starlink will face hurdles in India. The biggest challenge is cost. While India has some of the lowest mobile data prices in the world, starting at US$2 per month for basic, Starlink pricing is still around US$150 per month globally. It marks a price that most Indian households cannot afford. Even if Starlink could engineer local partner pricing to be lower, satellite broadband will still be far more expensive than mobile or even wireline broadband for the average consumer.
Another challenge for Starlink is the complexity of regulation. The Indian government is highly conscious of foreign satellite providers, while also being mindful of protecting national security and data sovereignty. Issues of data localization and technology transfers, as well as spectrum pricing, are still contested. In that case, regulatory clarity is essential for the long-term viability of Starlink's business model in India.
Furthermore, while Starlink can provide immediate connectivity to isolated areas, it may not represent a viable or sustainable option for cities, where traditional broadband and 5G networks can already provide faster speeds and pricing.
In contrast to Starlink, traditional broadband and mobile internet benefit from an infrastructure that has been built over time with economies of scale. In urban and suburban areas, fiber-optic and 5G networks deliver faster speeds and superior latency. For rural India, however, the cost and logistical problems of deploying these networks mean that satellite internet is a viable substitute for the foreseeable future, at least in the short to medium term.
Starlink's India entry is a big development in the country's digital transformation journey. It sheathes the rural and underserved communities with high-speed, low-latency Internet connectivity to bridge the gap of inequalities. But satellite Internet is not a magic bullet. From the promise of it, satellite Internet is best viewed as a service that supplements rather than replaces traditional broadband and Internet services, and that will remain so until pricing is regulated.
In order for India to truly take advantage of the benefits arising from digital inclusion, a multi-stakeholder approach will be needed. Government funding and subsidies, public-private partnerships, and innovative business models will be needed to deliver affordable and accessible satellite broadband services in rural communities.