Jefferies expects limited capabilities, Starlink’s premium pricing; believes Indian telecom companies have no interruptions

New Delhi (PTI) March 27 (PTI) Starlink’s current capabilities may be able to support 11.8 million subscribers in India, with up to 5.7 million subscribers by 2030, and “limited capabilities” may require advanced pricing.

India will become a major market for Starlink, but its launch is unlikely to disrupt telecommunications here.

Jefferies’ observations in its latest report are significant because Starlink, Starlink, based on satellite-based “Sky Broadband” service, stares at the Indian market as devotees of Indian regulator Trai shed light on the rules and other nuances and allocated the spectrum to SATCOM participants.

“Given the large area of ​​India, Starlink’s imminent launch in India will help monetize it. Our analysis shows that Starlink’s capabilities will currently support 8.8 million subscribers and by 2030, 5.7 million subscribers will support.”

This may require quality pricing, which is consistent with what is done in other markets.

According to Jefferies’ analysis, the government appears to be balancing the interests of SATCOM operators and telecom companies. The Starlink launch is unlikely to damage telecom companies. ”

It noted that Starlink has about 4.6 million subscribers worldwide, and North America is the largest market.

Although Leo or Low Earth Orbit satellite networks have the ability to be distributed around the world, they target larger countries because it can unleash greater capabilities.

It said: “Since Starlink cannot access the top 2 countries by region (Russia/China), other major powers (such as the Seventh Large) are becoming increasingly important.”

Starlink’s services are priced at 2-3 times higher-income (US) and lower-income markets (Kenya/Nigeria).

“Based on our analysis, Starlink may be able to serve 10.8 million subscribers in its current capacity at 100 Mbps,” Jefferies said. “As long as our analysis is about 30 times more capable by 2030, they are still able to serve 5.7 million subscribers.”

While this makes sense for Starlink (on the current 4.6 million users), it is still quite small compared to the size of India’s fixed line broadband market (currently 46 million; it can grow to 90-100 million in the next few years).

Jefferies believes Starlink is unlikely to break for a variety of reasons, including premium pricing due to capacity constraints, and the need for a relationship with telecom companies.

“The government also seems to be inclined to balance the interests of telecom companies and satellite operators rather than accepting everything Satcom players ask for. The form of the home broadband part accounts for about 8-9% of Jio’s revenue, while Bharti Airti’s India India revenue revenue is 4% so it is unlikely that this area will affect India’s fortos and therefore stands out in this area.