Billionaire Elon Musk’s satellite internet company Starlink is expected to get its license to operate in India soon, after clearing regulatory checks and tests. Starlink is expected to bring increase and widespread connectivity to India, especially in remote and rural localities.
Elon Musk’s Starlink is expected to clarify its shareholding pattern to the Department for Promotion of Industry and Internal Trade, after which it will get an operating certificate from the Department of Telecommunications (DoT).
The letter of intent by DoT will then be sent to telecom secretary Neeraj Mittal and minister of communications Ashwini Vaishnaw for their approval. After this, Starlink will be issued an approval from the Satellite Communications Wing. Notably, Starlink had applied for its global mobile personal communication by satellite services (GMPCS) license in 2022, and once granted, it will become the third company in India to get this license, after OneWeb and Reliance Jio.
According to its global usage, Starlink usually offers a download speed of up to 25 and 220 Mbps, while upload speed is usually around 5 to 20 Mbps. Most users experience a download speed of over 100 Mbps, according to the Starlink website. This kind of speed is not usually made available in remote areas through optical fibers of towers. Starlink is expected to offer speeds that are comparable to 4G and not 5G, since it is a satellite based internet provider.
While Starlink has not made any official statements regarding its pricing model in India yet, Moneycontrol reported that the cost of the service in the first year might be about ₹1,58,000, according to the company’s former India head. It is likely that the cost in the second year will be ₹1,15,000 plus 30 percent tax, since Starlink has a one-time purchase equipment.
What India offers to Telsa
India’s huge car market, with a new love for SUVs, can offer a much needed scope of growth for Tesla if it makes and sells its affordable EV here.
Domestic electric passenger vehicle sales have picked up pace, with the number of mass-market models growing threefold to a dozen by seven companies in 2023, from just four models by three manufacturers prior to the pandemic, according to data collated by automotive market research firm Jato Dynamics. Tata Motors dominates the local EV market, followed by MG Motor India and Mahindra & Mahindra. “The EV contribution in our portfolio is likely to increase to 25% in five years and reach 50% by 2030,” Tata Motors said in its annual report for FY23.
Strong growth in electric volumes is being triggered by government incentives to support both EV manufacturing and charging infrastructure, falling battery prices and increasing consumer awareness. This has also led to a surge in the number of new models, giving consumers a wider choice.
India’s nascent market with a huge growth potential could be highly beneficial for a struggling Tesla if it makes its Rs 20 lakh car here.
While there are concerns over the Chinese companies rushing to India after the new EV policy which can overwhelm Tesla in India with their cheaper EVs, it seems highly unlikely given the Indian government’s discouragement of Chinese investments. Last year in July, Reuters reported, China’s BYD told its India joint-venture partner it would shelve plans for a new $1-billion investment to build electric cars after its investment proposal faced scrutiny from the government.
As for the luxury segment, India units of luxury car manufacturers such as Mercedes-Benz, BMW and Audi may steer clear of the government’s new EV policy, ET has reported. Given that luxury car manufacturers have already invested in India through plants and operations, they don’t see much benefit in another large investment for a segment that’s currently less than 2% of the broader car market. Besides, assembling kits in India already allows for a lower duty structure.
India offers Tesla a market with huge potential for its affordable as well as other models while shielding it from its big rivals as well as incapacitating competition from Chinese car makers which are flooding the world with low-priced EVs.
