Elon Musk’s Satellite Internet to Launch in India after Starlink’s Jio, Bharti Deal
Two large telcos Bharti, Airtel and Reliance Jio have signed deals with SpaceX to bring Starlink satellite internet to India, BBC has reported. The deals come as a surprise to analysts because SpaceX owner, Elon Musk recently clashed with the telcos publicly.
The entry of Starlink satellite internet into the Indian market comes at a time when US and Indian officials are discussing a trade deal. The US has said it will impose retaliatory tariffs on India starting April 2.
Expanded Internet Coverage
By the close of 2024, Starlink had about 4.6 million subscribers across the globe. SpaceX wanted to launch Starlink broadband services in India in 2021. However, the company encountered regulatory challenges that delayed its debut in the Asian country.
Analysts have taunted the Jio and Airtel Starlink deals as critical in expanding satellite internet coverage in India. However, the agreements between SpaceX and the two telcos remain conditional and await Starlink’s approval in India before commencing operations. Bharti Airtel and Jio plan to leverage Starlink and their mobile networks to make broadband internet services accessible to businesses and communities in remote regions.
Jio says it will facilitate supply of Starlink equipment in India through its retail outlet network and digital stores. The company will also provide installation services. Although Airtel plans to do the same, it will be leveraging its deal with Eutelsat OneWeb to expand connectivity. Eutelsat OneWeb is a Starlink rival. Prior to the latest deal, Jio was considered Starlink’s major rival in India’s satellite internet market.
Musk’s Influence
Tech analyst Prasanto K. Roy says the decision to allocate satellite spectrum as opposed to auctioning it may have been influenced by Musk’s proximity to the US government. Globally, India ranks second in terms of internet market size. However, about 48% of the 1.4 billion people in the country have no access to the internet.
Previously Airtel and Jio owners billionaires Sunil Bharti Mittal and Mukesh Ambani had opposed Musk’s request to allocate satellite spectrum administratively. Musk wanted the spectrum to be allotted to ensure alignment with global standards. On their part, the telco owners wanted the spectrum actioned as opposed to being bid competitively.
Musk got his way when the government of India announced that the satellite spectrum would be assigned administratively. The decision came after Musk met Prime Minister Narendra Modi last month in Washington. During the meeting, the two discussed potential cooperation in mobility and space technology.
The Pricing Factor
If the Indian government approves SpaceX’s deal with the big telcos, Musk could access up to 70% of mobile users in the Asian country. The tech billionaire has been looking to enter the Indian market for some time now.
“Starlink is a clear winner here, Musk has been eyeing a presence [in India] because its size will also give him economies of scale,” Counterpoint Research Analyst Tarun Pathak says.
The two partnerships also provide an easy avenue for Starlink to comply with data localization regulations in the country. But pricing of internet services will be key considering that mobile data in the country is among the lowest across the world.
Satellite broadband internet plans are quite high – about $150 per month. Mobile data, on the other hand, costs about $2. SpaceX partnership with Jio and Airtel may help reduce satellite internet plans downs.
“Pricing may be better from Musk’s point of view and not rock-bottom, with Jio and Airtel offering the same services. Jio was hoping that it would raise the entry barriers for others by pressing for the auction route. But since that hasn’t happened, they must have felt it is better to change tack and do a tie-up,” Roy added.
Starlink provides broadband internet access areas within the satellite’s coverage. This makes satellite internet more reliable in rural or remote areas where conventional services like DSL that rely on telephone lines or cable to transmit data.
