Starlink, the satellite-based internet provider led by Elon Musk, may implement premium pricing in India due to limited capacity, according to a report by Jefferies.

Its current infrastructure can support 180,000 users at 100 Mbps, with a projected increase to 5.7 million by 2030. This remains a small fraction of India’s fixed-line broadband market, expected to reach 90 million–100 million users by the decade’s end.

Starlink’s pricing is likely to be 2–3 times higher than traditional providers, as seen in markets like the US, Kenya, and Nigeria.

Despite its potential to provide internet in underserved areas, Starlink faces capacity constraints and regulatory hurdles. It is still awaiting key approvals, including the Global Mobile Personal Communications by Satellite (GMPCS) license and spectrum allocation.

The Telecom Regulatory Authority of India (TRAI) is considering a five-year spectrum allocation, shorter than the 20 years Starlink seeks.

Additionally, partnerships with Jio and Airtel may help distribution, but competition with established telecom players remains limited.

India is strategically important for Starlink due to its exclusion from markets like China and Russia. However, its impact on major telecom operators is expected to be minimal.

Recent Starlink developments