What Starlink’s India Entry Means for Investors

Elon Musk is going all-in on India. Earlier this month, Tesla signed a lease for a showroom in Mumbai and opened up hiring for various roles. Now, SpaceX’s Starlink inked two back-to-back deals with telco giants Jio and Airtel to bring satellite internet services to the country. Yes, the same Jio that once clashed with Musk over satellite spectrum policies. 

This move is a game-changer not just for Starlink but for India’s entire satellite internet industry, which is projected to reach $1.9 billion by 2030, growing at a compound annual growth rate (CAGR) of 36%, according to Deloitte. 

So buckle up; things are about to get interesting!

First Things First: What is Starlink?

Starlink is a satellite-based internet service created by Elon Musk’s SpaceX. Unlike traditional broadband that relies on fiber-optic cables or cell towers, Starlink beams internet directly from space using a network of thousands of low-Earth orbit (LEO) satellites. This means that even in the most remote corners of the world—whether it’s a mountaintop, a deep forest, or the middle of the ocean—you can get high-speed internet with just a small dish.

As of 2025, Starlink has already launched over 7,000 satellites and serves millions of customers across the US, Europe, and parts of Africa and South America. It offers speeds between 50-220 Mbps, which, while not as fast as fiber, is a game-changer for places where regular broadband is unreliable or nonexistent.

Now, with its partnerships in India, Starlink is gearing up to bring this technology to one of the biggest and fastest-growing internet markets in the world.

A Plot Twist No One Saw Coming

So, Bharti Airtel and Reliance Jio’s deal with Starlink was quite a surprise. Jio, in particular, realised that if you can’t beat them, join them. 

Why? Mukesh Ambani’s telco and Musk’s satellite service were practically at war just a year ago over how satellite spectrum should be allocated in India. Jio wanted a spectrum auction, while Starlink preferred administrative allocation (aka a direct grant of spectrum). The Indian government ultimately sided with Starlink, clearing the way for its entry—but very few expected Jio to join hands with them.

What changed? Well, it’s hard to ignore the timing. Just months before these deals, Musk had a high-profile meeting with Indian Prime Minister Narendra Modi in Washington. That meeting seemingly paved the way for regulatory approvals and business partnerships. And here we are.

Here’s how the partnerships are structured:

• Jio will offer Starlink through its vast retail network and online platforms, handling sales, installation, and customer service.
• Airtel will integrate Starlink into its existing satellite portfolio, which already includes Eutelsat OneWeb, giving its customers multiple connectivity options.

What would be the price tag? 

The pricing model for Starlink services in India remains unconfirmed; however, in 2022, the then Starlink India Country Director, Sanjay Bhargava, said it could cost ₹1,58,000 (approximately $1,900) for the first year and ₹1,15,000 (approximately $1,380) subsequently. 

That’s insanely expensive for most Indian consumers, who enjoy rates as low as ₹399 per month (approximately $5) from established broadband providers like JioFiber and Airtel Xstream.

Moreover, Starlink’s expected hardware and subscription costs (₹25,000–₹35,000 for setup and ₹5,000–₹7,000 per month) are much higher than India’s current broadband average revenue per user (ARPU) of ₹400–₹600.

At this price point, the initial users will likely be businesses, government agencies, and wealthy individuals. But if history is anything to go by, costs will drop once Starlink scales up with Jio and Airtel.

What Can Starlink Do for the Indian Internet Market?

Let’s take a step back. Right now, India is the world’s largest consumer of mobile data, with users consuming up to 21.10 GB of data per month on average (as of September 2024). That number is expected to triple by 2028.
But here’s the catch: Millions of Indians still don’t have reliable internet access. The market opportunity becomes even more compelling when considering India’s digital divide statistics. 

• Nearly 41% of the country, or about 600 million people, do not have access to the internet. However, over the years, the size has been declining, as per Kantar – IAMAI report 2024.
• Many parts of rural India struggle with slow, unreliable networks or no internet.
• Laying fiber-optic cables or building towers in remote areas is expensive and slow.

The potential for satellite internet to bridge this connectivity gap is reflected in consumer sentiment, with a LocalCircles survey revealing that 91% of respondents believe satellite internet service will be transformative for India’s digital landscape.

The Bigger Picture: Impact on India’s Space Sector

Starlink’s move into India is a win. India’s space sector is on a rocket-fueled growth trajectory, with IN-SPACe projections showing that India’s space economy will expand from its current 2% global market share to reach $44 billion by 2033, representing 8% of the worldwide space economy.

But it’s not just about throwing satellites into orbit. As per a news report, the Telecom Regulatory Authority of India (TRAI) is expected to finalise pricing details for satellite spectrum allocation soon. 

All this comes as India rolls out bigger space reforms to attract private players and push commercialisation. Starlink’s partnerships with Jio and Airtel are precisely the kind of collaboration these reforms were meant to encourage—opening doors for more investment and innovation.

The Roadblocks

While this partnership looks solid, some challenges remain:

1. Regulatory Approvals are Pending

Starlink still needs final approval from IN-SPACe and the Department of Telecommunications (DoT). The regulatory process involves technical evaluations, security assessments, and policy considerations that could potentially delay commercial launch.

2. Weather & Network Performance

Satellite internet works great in clear skies, but monsoons, dense cloud cover, and network congestion could impact performance in India initially, till they are able to address these challenges.

3. Affordability & Adoption

If prices don’t drop, Starlink might remain a niche service rather than a game-changer for rural India.

The Investment Landscape

Starlink’s entry presents both opportunities and challenges in the investment landscape. These deals could be a long-term win for both telecom giants. 

However, beyond telecom, Starlink’s presence in India could have a broader economic impact by accelerating digital inclusion. Around 65% of India’s population lives in rural areas (as per the Economic Survey of 2022-2023), many of which still lack reliable internet access. Satellite connectivity could change that, particularly in remote regions like the island territories and underserved rural communities.

This connectivity expansion could benefit:

– Ed-tech platforms, which can now reach students in remote locations

– Telemedicine services, allowing doctors to provide virtual consultations in rural areas

– Agritech firms, enabling precision farming solutions that rely on real-time data

– Fintech startups, facilitating digital banking and payment services in previously unbanked areas

– E-commerce platforms, which could expand last-mile delivery networks

– Remote-area railway projects could get real-time train tracking, seamless communication, enhanced safety monitoring, and more, ultimately boosting efficiency and economic growth.

By providing high-speed internet (potentially 100+ Mbps) to regions where fiber optics or cell towers are impractical, Starlink could open up entirely new digital markets.

To Wrap Up

Starlink is finally poised to launch in India. If Jio and Airtel can make it work, we could see satellite internet revolutionising connectivity in rural areas, on-the-go transport, and enterprise solutions.

But there are still big questions:

• Can Jio and Airtel bring costs down to make it affordable for everyday users?
• Will Musk finally get a smooth ride in India, or will bureaucracy slow him down again?

Let’s wait and watch how it unfolds.

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