Mukesh Ambani may defeat Elon Musk as Jio has power to…

The primary reason which could spell doom for Starlink in India are its tariffs which are speculated to be far more expensive than those charged by other internet service providers such as Mukesh Ambani-led Reliance Jio and Sunil Mittal's Bharti Airtel.

Elon Musk’s satellite-based internet service is poised to be launched in India, however, despite all the hype, Mukesh Ambani-led Reliance Jio– the country’s top telecom service provider– is likely to retain its top spot and even has the potential to sink Starlink’s expansion in India.

Here’s how Mukesh Ambani could defeat Elon Musk’s Starlink in India.

The primary reason which could spell doom for Starlink in India are its tariffs which are speculated to be far more expensive than those charged by other internet service providers such as Mukesh Ambani-led Reliance Jio and Sunil Mittal’s Bharti Airtel.

Although Starlink has not announced any tariff plans in India, but judging by its prices in other countries, industry experts have made rough estimates about how much Elon Musk’s satellite-based broadband service would cost the Indian consumers.

Starlink tariffs in India

According to reports, Musk’s Starlink could cost a whopping Rs 1,58,000 for the first year, and Rs 1,15,000 from the second year onwards, including taxes.

Users need to make a a one-time purchase of the device needed to use the Starlink when they choose to install the service, which explains the cost difference between the first and second year. The device costs Rs 37,400, and users must pay an extra Rs 7,425 per month as service fee, as per reports.

Why Mukesh Ambani’s Jio will remain India’s top ISP?

Its obvious that Starlink will be several times more expensive than Mukesh Ambani’s Jio or Sunil Mittal’s Airtel, but industry insiders believe that Musk’s company will try to keep the prices as low as possible, which would play a key role in deciding whether Starlink sinks or swims in India.

According to several media reports, the cheapest Starlink tariff plan could be priced at around Rs 7400 per month. In comparison, Reliance’s Jio Fiber is more affordable by several orders of magnitude, costing just Rs 399 (plus taxes) per month, offering unlimited data at 30Mbps.

Thus, tariff prices will decide whether India’s middle class, which forms the backbone of the country’s consumer market, will switch to Starlink, or continue to avail internet services offered by other provides, Jio, Airtel, Vi and BSNL– whose prices are significantly lower than Musk’s satellite-based service.

Starlink in India

Recently, Union Minister Jyotiraditya Scindia announced that India is ready to provide license to Tesla CEO Elon Musk to launch his satellite-based Starlink internet service in the country. According to reports, Starlink has agreed to follow the rules laid down the Indian Government regarding data storage and security, and will be provided an operational license soon.

However, Starlink may face another issue while deciding its pricing in India as the Telecom Regulatory Authority of India (TRAI) has yet finalize the recommendations on the prices of spectrum allocation, which are expected by December 15.

At this point, its a safe bet to say that Mukesh Ambani-led Jio will continue to remain India’s largest internet service provider, while Elon Musk’s Starlink is likely to adopted by a niche market.