The unexpected deals mark a significant shift in the Indian telecom landscape, particularly given Jio and Airtel’s past opposition to Starlink’s entry.
While the agreements are still pending regulatory approval, they could reshape India’s internet market and influence broader geopolitical trade discussions between India and the United States.
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A surprising reversal
Until the recent announcement, Jio and Airtel were seen as Starlink’s biggest competitors in India’s satellite broadband market.
The two telecom giants had previously resisted Musk’s push for administrative allocation of satellite spectrum, advocating instead for an auction-based system.
However, in October 2024, the Indian government ruled in favour of administrative allocation, paving the way for Starlink’s easier entry into the market.
Despite their earlier opposition, both Jio and Airtel have embraced Starlink, recognising the potential of satellite internet in expanding connectivity, particularly in rural and remote areas.
This move ensures that they remain key stakeholders in India’s evolving broadband ecosystem rather than being disrupted by an external player.
The strategic benefits for Jio and Airtel
Reliance Jio and Bharti Airtel’s deals with SpaceX are not just about access to Starlink’s satellite internet services.
The partnerships allow both companies to integrate Starlink into their existing networks, boosting their service offerings and reaching previously underserved areas.
For Jio, the deal complements its existing JioFiber and JioAirFiber services. By offering Starlink equipment in retail outlets and providing installation support, Jio aims to provide high-speed broadband in even the most challenging locations.
Airtel, which already has an agreement with Eutelsat OneWeb, plans to use Starlink to further expand its connectivity reach. By leveraging satellite technology, both companies can extend their services to millions of Indians who currently lack internet access.
A crucial market for Musk
India represents a significant growth opportunity for SpaceX. The country has the world’s second-largest internet market, yet over 670 million people remain without internet access.
For Musk, who has faced regulatory barriers in China and slowing Tesla sales in key markets like Europe and Canada, gaining a foothold in India is critical.
Musk’s recent meeting with Indian Prime Minister Narendra Modi in Washington, where they discussed cooperation in space technology and mobility, underscores the importance of India in his broader business strategy. The timing of these agreements, coinciding with trade discussions between India and the US, also suggests a strategic alignment that could influence regulatory decisions in Starlink’s favour.
Regulatory hurdles and market challenges
Despite the high-profile agreements, SpaceX still faces regulatory challenges before it can officially launch Starlink services in India.
Approval from India’s telecom and home ministries, along with compliance with local security norms, remains pending. Additionally, pricing structures for satellite spectrum are yet to be announced, which could impact the affordability of Starlink’s services.
The Indian government will need to balance its desire to attract foreign investment with the interests of domestic telecom giants. The final terms of Starlink’s approval, including spectrum pricing and compliance requirements, will play a crucial role in determining its long-term viability in India.
A new chapter
The entry of Starlink marks a new chapter in India’s telecom sector. While traditional terrestrial networks dominate urban markets, satellite broadband offers a viable solution for rural and remote connectivity.
By partnering with Starlink, Jio and Airtel have positioned themselves as gatekeepers of this new era, ensuring they remain central to India’s digital expansion.
However, competition in the satellite broadband space is intensifying. Airtel’s investment in OneWeb and Jio’s partnership with Luxembourg-based SES for JioSpaceFiber indicate that both companies are hedging their bets.
The next few years will see increased competition among satellite service providers, each vying for a share of India’s rapidly growing internet user base.
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