The Indian government has made a significant decision regarding Elon Musk’s satellite internet company, Starlink.
Union Minister of State for Telecommunications Pemmasani Chandrasekhar stated that Starlink has been allowed to provide services to only 20 lakh users in India.
Also, the maximum internet speed will be restricted to 200 Mbps.
This decision has been made despite concerns that it could affect BSNL and other telecom companies.
Priority to Rural Areas
The government says Starlink’s services will mainly focus on remote and rural areas, where BSNL currently has a strong presence.
However, the initial cost of these services is expected to be high—up to ₹3,000 per month for customers.
Meanwhile, the rollout of BSNL’s 4G services is now complete. The minister added that BSNL has no plans to increase tariffs for now, as the aim is to first gain market share.
Starlink Gets Official License
India’s space agency INSPACe has granted Starlink a five-year license to offer satellite-based internet services in India using its Starlink Gen1 Constellation. T
he company now only needs to pay the spectrum fee and get final approval from the Telecom Department before launching services.
TRAI Proposes Revenue Sharing
The Telecom Regulatory Authority of India (TRAI) has proposed a new framework where satellite internet providers like Starlink will have to pay 4% of their revenue to the government.
This could result in an extra cost of ₹500 per urban user per year. However, no extra charges are proposed for users in rural areas.
The goal of this move is to boost rural connectivity and technology while making sure that local telecom companies do not face unfair competition.
