Mid and Smallcap Indices Plunge 2%, Extend Losses Amid Broad-Based Selling

On June 19, 2025, the Nifty Midcap index plummeted by nearly 950 points, a 1.63% drop, closing at approximately 57,206. Similarly, the Nifty Smallcap index shed almost 2%, settling at 18,013 during the Nifty expiry day. This marked the third consecutive day of losses for both indices, driven by widespread selling pressure. Key losers included prominent names like IREDA, RVNL, and FirstCry, reflecting the broader market's downturn. Factors Behind the Correction The recent decline in mid- and small-cap stocks stems from multiple factors: Profit Booking : Investors are locking in gains after a sharp rally in these segments, leading to heightened selling. Stretched Valuations : Many mid- and small-cap stocks have reached unsustainable price levels, prompting a correction. Geopolitical Tensions : Rising crude oil prices due to global uncertainties have fueled inflation concerns, negatively impacting market sentiment. These dynamics have created a cautious environment, with investors rea...
0

Starlink’s ₹3,000 Unlimited Internet Plans Set to Disrupt India’s Telecom Market Share in 2025

On June 9, 2025, Elon Musk’s Starlink announced its game-changing entry into India’s telecom market with unlimited internet plans priced at just ₹3,000 per month. This move, paired with a one-time hardware cost of ₹33,000, positions Starlink to challenge traditional telecom giants like Airtel and Jio, especially in rural and remote areas. Here’s an in-depth look at Starlink’s India launch, its potential to disrupt the market, and what it means for consumers.

Starlink’s Affordable Pricing: A Game-Changer for India

Starlink, the satellite broadband arm of SpaceX, is rolling out unlimited data plans in India at ₹3,000 per month, according to a recent CNBC Awaaz report. This pricing mirrors Starlink’s recent launch in Bangladesh, where the service also costs ₹3,000 monthly with a hardware cost of ₹33,000. The total first-year cost for Indian users comes to ₹66,000 (₹3,000 x 12 + ₹33,000), a significant reduction from earlier projections of ₹1.58 lakh for the first year by former Starlink India head Sanjay Bhargava.

Hardware Costs and Accessibility

To access Starlink’s services, users need to purchase a satellite dish and Wi-Fi router kit for a one-time fee of ₹33,000. While this upfront cost may seem steep, it’s a worthwhile investment for those in areas with limited or no access to traditional broadband. Starlink’s model eliminates the need for extensive ground infrastructure, making it a viable solution for India’s diverse geography.

How Starlink Works: Revolutionizing Connectivity

Starlink operates a constellation of low Earth orbit (LEO) satellites positioned 550 km above Earth, unlike traditional geostationary satellites. This setup ensures lower latency, making it ideal for high-bandwidth activities like streaming, online gaming, and video calls. Starlink plans to deliver 600–700 Gbps of bandwidth in India, primarily targeting rural and remote regions where conventional fibre or mobile connectivity is scarce.

Bridging the Digital Divide

As of April 2025, India’s rural teledensity stands at a mere 59.26%, leaving millions without reliable internet. Starlink’s satellite-based solution can provide high-speed connectivity to these underserved areas, potentially transforming access to education, healthcare, and economic opportunities. This focus on rural connectivity gives Starlink a unique edge over traditional telecom players.

Regulatory Milestones and Challenges

Starlink has secured a Letter of Intent (LoI) from India’s Department of Telecommunications (DoT) as of June 9, 2025, marking a crucial step toward offering satellite communication (satcom) services. However, several hurdles remain:

  • Spectrum Allocation: The Telecom Regulatory Authority of India (TRAI) recommendations on spectrum allocation are pending approval. No telecom operator in India currently has spectrum for satcom services.
  • IN-SPACe Clearance: Starlink needs final approval from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
  • Ground Infrastructure: Setting up the necessary infrastructure for commercial operations is essential for a smooth rollout.

Competitors like Eutelsat OneWeb and Jio Satellite Communications have already received licences, but they too await spectrum allocation. Starlink’s partnerships with Airtel and Jio, announced in March 2025, may help accelerate its entry by leveraging existing distribution networks.

Disrupting India’s Telecom Market Share

Starlink’s entry is set to disrupt India’s telecom market, currently dominated by players like Airtel, Jio, and Vodafone Idea. Here’s how it could reshape the landscape:

Targeting Underserved Markets

With its ability to deliver high-speed internet to remote areas, Starlink can capture a significant share of India’s rural market, where traditional telecoms struggle to expand due to infrastructure costs. This could erode the market share of established players, particularly in regions with poor connectivity.

Competitive Pricing Pressure

At ₹3,000 per month for unlimited data, Starlink’s pricing is competitive compared to existing broadband plans in India, which often range from ₹1,500 to ₹5,000 for limited data. This could force telecom giants to lower prices or enhance their offerings to retain customers, especially in urban areas where Starlink may also attract users seeking low-latency internet.

Technological Advantage

Starlink’s LEO satellite technology offers lower latency and higher speeds than traditional satellite services, giving it an edge over competitors like Eutelsat OneWeb. This advantage could appeal to businesses, gamers, and professionals in rural areas, further challenging the dominance of fibre-based providers.

Starlink’s Regional Presence and Pricing Insights

Starlink already operates in several Asian markets, including Japan, Malaysia, Indonesia, the Philippines, Bhutan, and Bangladesh. Monthly pricing in these countries ranges from ₹2,600 to ₹6,000, depending on the plan and region. India’s ₹3,000 monthly plan fits well within this range, making it an attractive option for consumers seeking reliable, high-speed internet.

Pros and Cons for Indian Consumers

Pros

  • High-Speed Internet: Low-latency LEO satellites ensure seamless streaming, gaming, and video conferencing.
  • Rural Access: Starlink can connect remote areas where fibre and mobile networks are unavailable.
  • Unlimited Data: The ₹3,000 monthly plan offers great value for heavy internet users.

Cons

  • Upfront Cost: The ₹33,000 hardware fee may deter budget-conscious users.
  • Regulatory Delays: Pending approvals could push back the launch timeline.
  • Competition: Rival satcom providers like Jio Satellite Communications may offer competitive alternatives.

What’s Next for Starlink in India?

Starlink’s launch in India, expected within the next 12–18 months, could redefine internet access across the country. Its focus on rural connectivity aligns with India’s need to bridge the digital divide, but success hinges on navigating regulatory challenges and establishing ground infrastructure. As of 04:19 PM IST on June 9, 2025, Starlink is well-positioned to disrupt the telecom market, but the road ahead requires careful execution.

Tips for Potential Users

  • Plan Your Budget: Account for the ₹33,000 hardware cost when considering Starlink.
  • Stay Informed: Follow updates from Starlink and the DoT for the latest on the launch timeline.
  • Assess Your Needs: If you’re in a rural area with poor connectivity, Starlink could be a game-changer.

Conclusion

Starlink’s ₹3,000 unlimited internet plans and ₹33,000 hardware cost signal a new era for India’s telecom market. By targeting rural and remote areas with high-speed, low-latency internet, Starlink is poised to disrupt the market share of traditional players like Airtel and Jio. While regulatory hurdles remain, Starlink’s innovative approach could bridge India’s digital divide and redefine connectivity in 2025. Stay tuned to The ExpertSK blog for updates as Starlink prepares to launch its services in India.



Comments

Post a Comment