NEW DELHI – Starlink, the satellite internet division of Elon Musk’s ventures, has inked a significant deal with India’s foremost telecom operator to launch its services in the country’s expansive market. This announcement comes closely following a similar agreement with India’s second-largest telecom provider.
The new partnerships with Reliance Jio and Bharti Airtel, which jointly dominate over 70% of India’s telecom sector, aim to extend internet connectivity to millions residing in isolated regions. However, Starlink’s entry into this populous nation is contingent upon securing government approval. These developments are particularly timely, occurring just weeks after Indian Prime Minister Narendra Modi’s discussions with Musk in Washington.
The agreement enables Starlink to distribute and sell its equipment through Jio’s extensive network of retail outlets across India, thereby facilitating direct market access. Additionally, Starlink is set to leverage the telecom partners’ existing infrastructure to enhance satellite internet coverage, targeting vast populations currently underserved by traditional connectivity.
According to a statement from Jio, Starlink’s high-speed internet offerings are expected to complement Jio’s existing broadband services by extending coverage to areas that are logistically challenging, swiftly and economically. Furthermore, Jio will assist with installation and activation services for Starlink’s devices.
Elon Musk’s enterprises have previously encountered challenges in penetrating the Indian market. A particular contention between Jio and Starlink revolved around the method of awarding satellite spectrum services in India. While Jio advocated for spectrum allocation through auctions to promote equitable competition, Musk pushed for administrative assignment of spectrum, aligning with international precedents. The Indian government eventually decided to allocate satellite spectrum administratively.
It remains uncertain if Starlink has secured the necessary license approval, though recent local media reports indicate that regulatory clearance could be imminent. Last November, India’s telecom minister, Jyotiraditya Scindia, noted that Starlink had not yet met certain security requirements necessary for licensing approval.
A potential hurdle for Starlink in India could be the pricing issue, as mobile data services in the country are among the most affordable worldwide. Reliance Jio, owned by Mukesh Ambani, has even offered data for free with certain mobile plans.
Additionally, Tesla, Musk’s electric vehicle company, has faced similar obstacles in India due to lofty import duties on cars but seems to be gaining ground. The company has started hiring in India and has reportedly signed a lease for its inaugural showroom in Mumbai.
Starlink’s satellite technology could be pivotal in bringing the internet to approximately 40% of India’s sizable population, which currently lacks online access. This is particularly essential in remote, rural, and mountainous locales. By using a network of over 6,900 active satellites, Starlink provides low-latency broadband, crucial for bridging the digital divide in inaccessible regions.
