According to Pemmasani Chandra Sekhar, Union Minister of State for Communications, Elon Musk’s satellite internet business Starlink will only be able to provide 200 Mbps speeds to 20 lakh users nationwide. The minister downplayed worries that satellite communication services will pose a serious threat to current telecom providers, especially the state-run Bharat Sanchar Nigam Limited (BSNL), while speaking on the sidelines of a review meeting for the company. It is anticipated that the satellite internet service will mainly serve rural and isolated regions, where BSNL is well-established and where traditional broadband infrastructure is still scarce. The minister did, however, stress that high costs would prevent broad adoption.
It is anticipated that Starlink’s high entry costs will make it a niche service rather than a mass-market rival to the millions of customers served by current broadband and mobile operators at significantly lower price points. Pemmasani addressed BSNL’s competitive position by announcing that the state telecom provider has finished rolling out its 4G network nationwide. He said the corporation would prioritize market development above increasing tariffs to maximize income. First, we want the market. The minister stated, “No tariff hikes are planned,” implying that BSNL will continue to offer reasonable prices in order to protect its market share, especially in rural areas where Starlink might try to expand.
