Elon Musk plans 200K broadband terminals in India by December 2022

Elon Musk’s SpaceX, which incorporated its 100 per cent subsidiary Starlink Satellite Communications Pvt Ltd on Monday, is planning to pilot satellite-based broadband services in 12 underprivileged districts across the country, according to sources in the know.  

The company is looking at 200,000 satellite broadband terminals in India by December 2022, of which 80 per cent would be in rural districts, says Sanjay  Bhargava, country director, India, at SpaceX. 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 in its first tryst with India. 

Sources say 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. 

The company will be offering the service for 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. Customers can pre-book orders for a connection.

Starlink is looking to partner with entrepreneurs to find solutions for making it affordable for users. 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 says that it sees a lot of potential to extend its broadband services in India. For example, nearly 70 per cent of schools in the country do not have broadband connectivity (unlike the US where 99 per cent schools are on broadband), which provides Starlink with a massive opportunity. 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.