SpaceX, the aerospace company owned by world’s richest person Elon Musk, on Monday incorporated its 100% India subsidiary Starlink Satellite Communications Pvt Ltd to provide satellite-based broadband services in 12 underprivileged districts across the country.
According to a report in Business Standard, Sanjay Bhargava, country director, India, at SpaceX said the company is aiming 200,000 satellite broadband terminals in India by December 2022, of which 80% would be in rural districts.
Starlink is working closely with Niti Aayog to bring broadband connectivity to 100 schools (20 in Delhi and the rest in rural districts) as proof of concept.
The publication citing sources mentioned that the average cost of the service would be similar across the world. At present, it is highly subsidised as volumes are small and there are only around 100,000 active connections in 17 countries.
Starlink expects companies — whether small, medium or big — to look at innovative ways to make the service affordable for rural consumers. It is also keenly watching the way the Universal Service Obligation Fund, to which telcos contribute every year, deploys its surplus funds to ensure connectivity to all.
Cost of Starlink satellite broadband service
In India, cost of Starlink’s satellite broadband service will cost around Rs 1 lakh annually (about $100 dollars a month) while the kit, which includes the dish, modem and cable, will cost about Rs 40,000. In order to get a connection, customers have to pre-book.
Worth mentioning here is that the company is also looking to partner with entrepreneurs to make the service more affordable for users in India. For instance, an entrepreneur could set up village centres where satellite broadband connectivity would be used to provide a plethora of services like ATM, digital library, cyber café, rural digital healthcare centre, amongst others, and thereby make a viable business model.
The company believes there is huge potential for growth for Starlink broadband services in India as nearly 70% of schools in the country do not have broadband connectivity (unlike the US where 99% schools are on broadband). The courts are another area where the company could extend its services.
Bhargava, also announced in his linked.in handle that the company would soon start applying for licences to offer its satellite broadband service.
