Synopsis:
As Starlink gears up to test spectrum in India, Indus Towers’ vast network and Airtel backing stand firm, but with satellite broadband looming on the horizon, will India’s telecom tower giant maintain its dominance, or is disruption closer than it seems?
The telecom infrastructure segment witnessed heightened investor attention after news surfaced regarding Starlink’s spectrum testing in India. Despite the buzz around satellite internet, Indus Towers, a key player in India’s telecom tower market, appears relatively insulated from short-term threats.
The company, with a market capitalization of Rs. 94,446.23 crore and a current price of Rs. 358 per share, operates a vast network of 249,305 macro towers and 405,435 co-locations across 22 telecom circles (As of March 31st, 2025). Its extensive presence underpins the network operations of major mobile operators, including Bharti Airtel Ltd (BAL).
What’s Happening with Starlink?
SpaceX’s Starlink has received a provisional test spectrum as of August 12th, 2025, and is preparing to establish 20 earth station gateways in cities such as Noida, Navi Mumbai, and Chennai, with three sites already under construction.
The Navi Mumbai terminals are slated for initial spectrum testing. Starlink’s network rollout requires at least 50,000 user terminals, imported from manufacturing units in Texas, Los Angeles, and Seattle. However, the Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (TRAI) are yet to finalize spectrum pricing, leaving some regulatory ambiguity.
Indus Towers’ Operational and Financial Backbone
Indus Towers strengthened its market position in fiscal 2025 by adding 29,569 macro towers, including the acquisition of 12,606 towers from BAL for Rs. 2,032 crore. The company also recorded 36,847 net co-location additions on macro towers and 3,192 on lean towers.
Despite a slight decline in the tenancy ratio to 1.65 times as of March 2025, the majority of newly added towers feature multiple co-locations, maintaining Indus Towers’ leadership in the industry. The company’s capex stood at Rs. 6,870 crore in FY25, lower than FY24’s Rs. 9,698 crore, reflecting moderated expansion intensity while supporting 5G rollouts.
Why Starlink’s Entry May Not Threaten Indus Towers Immediately
Indus Towers’ management has downplayed concerns regarding Starlink’s terrestrial network disruption. Satellite broadband faces inherent technical and commercial constraints, including higher costs and limited speeds, making it a less viable alternative to terrestrial telecom networks in the near term.
Additionally, the Indian government has capped Starlink’s user base at 2 million (20 lakh), further limiting competitive pressure on large-scale tower operators. Stringent regulatory compliance including 30 mandatory security norms, local data center requirements, NavIC integration, and domestic manufacturing standards—adds operational complexity for Starlink and its partners.
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Strategic Linkages and Market Stability
The company maintains strong operational and financial ties with BAL, ensuring managerial oversight while operating independently. This relationship provides an added layer of stability, as Indus Towers is strategically integral to BAL’s network operations. Even if satellite broadband expands, Indus Towers’ towers remain crucial for mobile network coverage and enterprise connectivity solutions across India.
Bharti Airtel is the majority owner of Indus Towers as of 2025, holding approximately 50 percent of the company’s shares after increasing its stake and following Vodafone Group’s exit.
Looking Ahead
While the Jio-Airtel-Starlink collaboration is poised to redefine India’s broadband landscape, immediate risks to Indus Towers’ core business appear minimal. Regulatory hurdles, cost considerations, and technological limitations for Starlink suggest that Indus Towers’ extensive tower portfolio and co-location dominance will continue to sustain its leadership in the telecom infrastructure sector.
Written By Manan Gangwar
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