The recent reports of the BSNL and Starlink partnership have generated significant excitement among Indian telecom users. According to sources, the Department of Telecommunications (DoT) is planning to grant Starlink the Global Mobile Personal Communication by Satellite (GMPCS) license. Consequently, this license would enable Starlink to introduce its satellite-based internet services in India. With the implementation of this advanced technology, Indian consumers could benefit from more affordable recharge plans and improved coverage. As a result, this development poses a substantial challenge to the existing telecom giants, potentially reshaping the competitive landscape of the industry.
Disrupting Monopolies
For nearly a decade and a half, Jio and Airtel have single-handedly dominated the Indian telecommunication market. However, recent developments have disrupted this dominance. Following a 25% hike in recharge prices, Jio, Airtel, and Vodafone Idea are grappling with significant customer dissatisfaction. This discontent has led approximately 250,000 customers to transfer their services to BSNL via mobile number portability (MNP) since July 3-4.
The surge in BSNL’s customer base is not solely due to these transfers. The company has also reported adding around 2.5 million new connections to its network during this period. This remarkable growth highlights the shifting dynamics in the Indian telecom sector, driven by consumer demand for more affordable and reliable services.
Satellite Technology Meets Telecom
Starlink, a satellite network from SpaceX, has achieved consecutive successes. Initially, it provided humanitarian aid by launching services in Ukraine. Recently, it expanded to enhance internet connectivity in remote areas of Indonesia, aiding the government in overcoming geographical barriers to healthcare. Starlink has also aimed to enter the Indian market since 2021 but faced delays due to India’s requirement for full ownership disclosure. Starlink cited U.S. privacy laws as a barrier to sharing this information.
Regardless, the Department of Telecommunications (DoT) finally plans to grant Starlink the Global Mobile Personal Communication by Satellite (GMPCS) license. The BSNL and Starlink partnership aims to use satellite technology to build strong networks without needing extensive physical infrastructure. Consequently, this could lead to lower data plan costs and recharge rates for consumers struggling with recent price hikes from other providers. Moreover, reports suggest that Starlink, backed by the Tata Group, might offer speeds up to 300 Mbps. Such speeds would enable smooth internet access for activities like video calls, browsing, and downloads, thereby avoiding the limitations of traditional tower-based networks.
What to Expect
The BSNL and Starlink partnership introduces Starlink’s satellite technology to India and aims to offer cheaper and more widely available services. This could potentially capture a significant market share, thereby, challenging the monopolies of Airtel and Jio. Consequently, the established players may need to rethink and adjust their strategies.
Lastly, India’s telecom landscape might soon undergo a major shift, with BSNL making a strong comeback and potentially reshaping the industry.
