Elon Musk’s SpaceX has made significant progress in entering the Indian telecom market by signing two consecutive agreements with the country’s largest mobile operators, Reliance Jio and Bharti Airtel, to offer Starlink satellite internet services.
Reliance Jio, owned by billionaire Mukesh Ambani, announced on Wednesday that it had partnered with SpaceX to bring Starlink services to its customers. As part of the agreement, Jio will distribute Starlink equipment through its retail outlets and provide installation and customer support.
A similar collaboration with Bharti Airtel, India’s second-largest mobile operator, was revealed a day earlier. Gwynne Shotwell, president of SpaceX, expressed optimism about working with both Jio and Airtel to improve connectivity in India.
However, before moving forward, Starlink must obtain regulatory approval from Indian authorities.
The move to collaborate rather than compete represents a shift in Starlink’s approach to the Indian market. Neil Shah, a vice president at Counterpoint Research, called it a “prudent strategy”, emphasizing that partnering with established local players is essential for success in India’s highly competitive telecom sector.
“Both Jio-Airtel and Starlink need each other to drive this market,” Shah noted.
India, the world’s most populous country, still has millions of people in remote areas without reliable broadband access. While satellite internet services can bridge this gap, pricing will play a crucial role in determining their success, as costs remain higher than traditional broadband.
Airtel has previously signed a similar partnership with France’s Eutelsat OneWeb, another satellite internet provider that, like Starlink, uses low Earth orbit (LEO) satellites to deliver global connectivity.
Initially, India’s wireless carriers were resistant to Starlink’s entry, arguing that it should not receive airwaves at a lower cost than what they had paid in past spectrum auctions. However, the recent agreements indicate a shift in the telecom industry’s approach to satellite-based internet services.
These deals come after Indian Prime Minister Narendra Modi met with Musk in Washington, DC, where they discussed space, technology, and innovation.
Musk has long sought to expand his business interests in India. His electric vehicle company, Tesla, has been planning to enter the Indian market since 2017, but progress has been slow due to import duty negotiations. Recently, reports surfaced that Tesla had leased a showroom in Mumbai to sell imported cars.
Musk had also planned to visit India last year, with expectations of announcing a $2 billion investment in manufacturing facilities. However, the visit was canceled, and the investment plans did not materialize.
