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Satellite internet in India: TRAI’s new pricing model explained

Satellite internet in India: TRAI’s new pricing model explained

Satellite internet in India: India is on the verge of a digital revolution with the imminently arriving cheap satellite internet. Elon Musk’s Starlink, one of the globe’s top satellite-based connectivity companies, is going to deliver high-speed internet to the nation, with an emphasis on underprivileged rural and far-flung regions. This satellite-guided service could significantly improve connectivity in areas where traditional mobile or broadband networks are not functional or even present.


TRAI’s Push for Affordable Pricing

The Telecom Regulatory Authority of India (TRAI) has recently proposed a favorable pricing structure for satellite internet spectrum. As per reports, this could allow Starlink to launch unlimited data plans starting as low as ₹840 per month. While this monthly cost is relatively affordable, the upfront cost for hardware—ranging from ₹21,300 to ₹32,400—remains a potential barrier for many Indian users.

Implications for Telecom Giants

The entry of satellite internet at low costs can contribute to the pressure on established telecom operators like Reliance Jio, Airtel, and Vodafone Idea (Vi). They already have cheap mobile internet plans, but Starlink offering unlimited high-speed data can draw a significant portion of their customers, especially those with connectivity problems in their areas.


As its customer base increases, Starlink may make its huge infrastructure and spectrum investment cost with time, perhaps changing the face of internet in India.

Government Revenue and Regulation

Under TRAI’s recommendations, satellite internet providers such as Starlink will need to share 4% of their annual revenue with the Indian government. Additionally, for urban customers, companies will pay an extra ₹500 per user annually. However, there will be no such fee for rural users—further boosting accessibility for India’s hinterlands.

Global Comparison: India vs Bangladesh

In comparison, Starlink’s product in neighboring Bangladesh is far more expensive, priced at approximately ₹4,200 a month with installation fees close to ₹37,200. This is in contrast to the plain sight affordability and dissemination of the Indian rollout thanks to the regulatory measures taken by TRAI.

Also Read: India Becomes 4th Largest Economy: GDP Hits $4 Trillion

With TRAI advocating low-cost satellite internet and Starlink’s plans targeting the Indian market, rural India’s millions can look forward to soon having access to secure high-speed internet. With this being a possibility, the country’s digital future can be rewritten and legacy telecom players can be challenged.

 

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