Key Points

Speaking on the sidelines of a Bharat Sanchar Nigam Limited (BSNL) review meeting, the minister downplayed concerns about satellite communication services posing a significant threat to existing telecom operators, particularly the state-run Bharat Sanchar Nigam Limited (BSNL).

"Starlink can have only 20 lakh customers in India and offer up to 200 Mbps speed. That won't affect telecom services," Pemmasani stated, seeking to allay fears about disruption to India's established telecommunications market.

The satellite internet service is expected to primarily target rural and remote areas where traditional broadband infrastructure remains limited, territories where BSNL maintains a significant presence. However, the minister emphasised that prohibitive costs would restrict widespread adoption.

"The upfront cost for satcom services will be too high, and the monthly cost may be around Rs 3,000," he said, suggesting the premium pricing will naturally limit the service's market penetration.

The high entry costs are expected to position Starlink as a niche service rather than a mass-market competitor to existing mobile and broadband operators who serve millions of customers at substantially lower price points.

Addressing BSNL's competitive position, Pemmasani announced that the state telecom operator has completed its 4G network rollout across the country. He indicated the company would focus on market expansion rather than revenue optimisation through tariff increases.

"We want market first. There are no tariff hikes planned," the minister said, suggesting BSNL will maintain competitive pricing to defend its market share, particularly in rural areas where Starlink may seek to establish a presence.

- ANI