Reasons why and how Starlink may not become a worry for Airtel and Reliance Jio in India

Starlink's entry into the Indian broadband market is unlikely to pose a significant threat to established telecom giants Jio and Bharti Airtel, according to a report by JM Financial. The analysis suggests that the superior pricing, higher speeds, and unlimited data offered by Reliance Jio and Bharti Airtel's home broadband plans will keep them firmly in the lead. Instead of direct competition, the report anticipates that Elo Musk's Starlink satellite-based services will primarily serve to complement the existing networks of Indian telcos, playing a crucial role in expanding high-speed internet access to remote and underserved rural areas across the country.
The cost disparity is a key factor. Globally, Starlink's satellite internet plans range from $10 to $500 per month, with an additional one-time hardware cost of $250 to $380. In contrast, Indian telecom companies offer home broadband plans starting as low as $5 to $7 per month, with premium plans providing 1Gbps speeds and access to streaming services for approximately $47 per month. Furthermore, unlike Reliance Jio and Airtel's unlimited data offerings, Starlink's plans come with data caps.
Given India's price-sensitive market, Starlink's higher costs and speed limitations is likely to make it a less competitive option for users. This reinforces the expectation that its primary role will be in reaching rural and underserved regions, rather than directly challenging Reliance Jio and Bharti's Fiber and AirFiber broadband services.

While Reliance Platforms and Bharti have announced agreements with SpaceX to distribute Starlink's broadband services in India – including selling equipment through their retail outlets and offering services to rural businesses, schools, and health centers – these collaborations are currently pending regulatory approval for SpaceX to operate in the country.
Looking ahead, while there is potential for future collaboration in direct-to-cell satellite services, similar to Starlink's partnerships with telecom companies globally, industry experts remain skeptical about its potential to disrupt India's wireless market. Technical challenges, such as maintaining reliable smartphone connectivity due to power and antenna limitations, Starlink's dependence on telcos for 4G/LTE spectrum access, and the generally slower and less reliable performance of satellite internet compared to fiber or traditional wireless services are cited as key reasons.
The revenue generated by Reliance Jio and Bharti Airtel from selling Starlink's equipment is not expected to significantly impact their overall earnings. Both companies already have their own more advanced satellite broadband ventures – Bharti with Eutelsat OneWeb and Reliance Jio with SES (Orbit Connect India) – which are further along in the process of securing regulatory approvals in India.
Despite Starlink's large network of over 6,400 low-Earth orbit (LEO) satellites providing a capacity advantage, this scale is seen as more beneficial for partnering with Indian telcos to expand connectivity in hard-to-reach areas rather than for direct competition.