In India, Satellite Internet Faces Critical Price Test

Starlink's standard U.S. pricing structure ranges from $120 to $500 monthly with hardware costing $599-2,500

Airtel and Reliance Jio's new partnerships with SpaceX's Starlink create a pricing challenge that will determine the feasibility of satellite internet in India.

Starlink's standard U.S. pricing structure ranges from $120 to $500 monthly with hardware costing $599-2,500. Even in markets where Starlink introduced more accessible pricing, such as Kenya ($10 monthly) and Eswatini ($50), these rates still substantially exceed India's broadband norms. Fixed wireless and fiber plans from Jio and Airtel currently start at just 399-499 rupees ($4.6-5.75) monthly, for instance.

This pricing mismatch is particularly significant given the market both companies aim to serve. Approximately 40% of India's population — nearly 400 million people — lacks reliable internet access, primarily in rural areas where price sensitivity is highest.

India's wireless penetration remains the lowest among peer nations at 82.5 customers per 100 people. Rural teledensity has stagnated in recent years despite overall market growth, highlighting both opportunity and the affordability barriers that have limited expansion.

The technological approaches behind these partnerships differ significantly. Starlink operates through low Earth orbit satellites positioned approximately 550 kilometers above Earth, offering lower latency but requiring thousands of satellites for coverage. Starlink currently has over 6,400 satellites in orbit.

Both telecom giants have existing satellite ventures. Jio formed a joint venture with SES in 2022, focusing on medium Earth orbit satellites positioned 8,000-20,000 kilometers above Earth. These require fewer satellites — between 5 and 30 — to provide global coverage but offer higher latency. JioSpaceFiber has already launched in remote locations across Gujarat, Chhattisgarh, Odisha, and Assam.

Bharti Airtel offers satellite services through Eutelsat-OneWeb, where Bharti Enterprises holds a 21% stake. OneWeb has deployed over 630 satellites in low Earth orbit, similar to Starlink's approach.

Starlink's Direct-to-Cell technology represents another potential service offering. This technology connects standard phones directly to satellites without requiring hardware modifications or special applications, effectively eliminating mobile dead zones. T-Mobile launched this service in beta in February, initially offering text messaging with plans to expand to picture messaging, data services, and voice calling.

The economics of satellite internet could improve as technology matures. Installation costs could decrease from current $7-8 million to $3-4 million per satellite, while throughput improves and satellite lifespan extends beyond the current four-year average for low Earth orbit systems.

In India's increasingly consolidated telecom market, where Jio and Bharti now control approximately 81% of market share, satellite services appear positioned as complementary offerings rather than mainstream alternatives. Jio's statement specifically positions Starlink as extending high-speed internet "to the most challenging of locations in a quick and affordable manner."