India is on the brink of a satellite internet revolution, with global players like Elon Musk’s Starlink preparing to roll out affordable, unlimited data plans priced below ₹840 ($10) per month, according to a report by The Economic Times. These initial offerings are expected to be promotional in nature, aimed at rapidly building a strong user base across urban and rural regions.
Satcom Players Eyeing 10 Million Users
With ambitions to scale up to 10 million users over the medium to long term, satellite internet providers hope to offset high spectrum and licensing costs by leveraging economies of scale. These ultra-affordable plans could be game-changers in areas with limited broadband access.
High Spectrum Fees Unlikely to Deter Starlink
India’s Telecom Regulatory Authority (Trai) has proposed an urban user spectrum fee of ₹500 per month—higher than terrestrial telecom services. Despite this premium, analysts suggest that capital-rich firms like Starlink are unlikely to be discouraged from entering the market.
“Despite the high spectrum charges and license fees, satcom companies are expected to launch at low price points — likely under $10 — to drive adoption and recover upfront capital costs over a broader customer base,” said Ashwinder Sethi, Partner at Analysys Mason.
TRAI’s Proposed Regulatory Framework
Under Trai’s recommendations, satellite communication companies would be subject to:
- 4% revenue share on adjusted gross revenue (AGR)
- A minimum annual spectrum fee of ₹3,500 per MHz
- An 8% license fee for offering commercial services
These regulatory measures are currently under review and pending final government approval.
If approved, these reforms could pave the way for a new era of affordable, high-speed satellite internet access in India, especially in underserved and remote areas.