New Delhi: India’s largest telecom providers, Reliance Jio and Bharti Airtel, have signed separate agreements with Elon Musk’s SpaceX to introduce the Starlink satellite internet service to the country.
The unexpected move comes amid past disputes between Musk and both telecom giants over spectrum allocation policies. The agreements, which aim to expand broadband coverage, are subject to approval from the Indian government.
Starlink’s India expansion
Starlink, which had 4.6 million global subscribers as of 2024, has been attempting to enter the Indian market since 2021 but faced regulatory roadblocks.
The new deals would allow Jio and Airtel to integrate Starlink’s satellite services with their mobile networks to deliver broadband connectivity, particularly to remote and underserved regions.
Jio will offer Starlink devices through its retail stores and online platforms while also providing installation support. Airtel is considering similar offerings and will integrate Starlink with its existing partnership with rival satellite provider Eutelsat OneWeb to expand its internet services.
Musk’s Victory
Industry analysts were surprised by Starlink’s simultaneous partnerships with Jio and Airtel, especially since Jio had been seen as a major competitor in India’s satellite broadband market.
Previously, Jio’s Mukesh Ambani and Airtel’s Sunil Bharti Mittal opposed Musk’s call for administrative spectrum allocation, instead favoring an auction-based system. However, in a significant win for Musk, the Indian government announced in October 2024 that spectrum would be allocated instead of auctioned, aligning with Musk’s position and enabling the current deals.
This policy change followed Musk’s meeting with Indian Prime Minister Narendra Modi in Washington, where they discussed space technology and mobility cooperation. Analysts suggest Musk’s influence over US policy may have played a role in India’s decision to shift its spectrum allocation strategy.
India’s Digital Divide
India, the world’s second-largest internet market, still has 670 million people without internet access, according to a 2024 GSMA report. Satellite broadband is seen as a crucial tool for closing this digital gap, offering connectivity in areas where traditional cable or DSL services are unavailable.
Musk has long sought a presence in India, as the country’s vast market offers significant economies of scale—critical for reducing the high costs associated with satellite internet. Additionally, partnering with Jio and Airtel allows Starlink to comply with India’s strict data localization laws more efficiently.
One major factor in Starlink’s success in India will be its pricing. India has some of the lowest mobile data costs in the world, with an average monthly cost of 150 rupees ($2). In contrast, Starlink’s standard broadband plans cost around $150 per month.
A strategic shift
For Jio and Airtel, the partnerships mark a major shift in strategy following the government’s spectrum allocation decision, which did not favor them. Analysts believe that instead of resisting, the telecom giants decided to adapt by collaborating with Starlink.
Meanwhile, the Indian government’s stance may have been influenced by ongoing trade negotiations with the U.S., particularly as President Joe Biden has threatened to impose retaliatory tariffs on India from April 2. With a trade deal under discussion, analysts suggest India may have chosen cooperation with Musk rather than direct competition.
By securing partnerships with India’s two largest telecom providers, Musk has successfully positioned Starlink as a dominant player in the country’s satellite broadband market, pending government approval.
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