Starlink May Be Too Expensive for Ordinary Pakistanis If Launched

Starlink, a satellite internet service, could provide faster and more dependable connectivity in Pakistan, but its high price tag may make it inaccessible for the majority of households across the nation. Data Darbar's recent assessment suggests that low-earth-orbit satellite internet typically carries a steeper price tag than the fixed broadband services commonly used by typical households, indicating it is more likely to target premium customers rather than become a widespread alternative to broadband internet.

The potential customer base in Pakistan might mainly consist of higher-income individuals, enterprises, and users in remote regions where traditional broadband is either nonexistent or too costly to set up. This economic factor is particularly crucial because fiber remains a more practical solution in densely populated urban areas.

However, satellite capacity is distributed across a region, which could lead to performance degradation as the number of subscribers grows. The report indicates that Starlink is more likely to augment Pakistan's current connectivity infrastructure instead of supplanting it. Potential strong markets include remote offices, enterprises needing backup connectivity, and households in areas inadequately served by fiber or mobile networks.

Operating a satellite internet service in Pakistan would involve considerable regulatory burdens, with an estimated 8.5 percent revenue burden. Recurring charges, including license fees, Universal Service Fund, and spectrum charges, would amount to approximately 2.5 percent of annual gross revenue. Additionally, a 6 percent levy on gross revenue would contribute to a space-development fund, pushing the combined cost to around 8.5 percent.

Operators would also need to establish an earth station in Pakistan within 18 months and route domestic traffic through it. User data would have to be stored within the country, and operators would require lawful interception capabilities. Taking all these factors into account, Starlink is likely to be a premium connectivity option in Pakistan rather than an affordable alternative for the typical internet user.