According to JM Financial, direct-to-cell satellite communications, pioneered by Starlink, may not significantly disrupt telecom operator’s mobile broadband business. The technology is still in its early stages and heavily relies on telcos for accessing compatible 4G airwaves for smartphone connectivity. The technology’s inferior performance compared to traditional wireless services means it would not impact Indian telcos’ wireless business. Therefore, satellite players must ensure potential tie-ups with telcos enable user authentication and connection via SIM cards.
The company reported that while Starlink has satellites in space that can directly beam phone signals to smartphones, satcom companies are still in the testing and development stage. It also noted that satellite broadband services would not threaten telcos’ home broadband business as they will be 7-18 times more expensive than telco’s plans. In addition, satellite internet companies will also offer data caps in most plans.
