The telecom companies Reliance Jio and Bharti Airtel made individual agreements with SpaceX to introduce Starlink satellite internet services in India. Many industry experts expressed surprise about this move since Elon Musk previously had conflicts with both companies regarding spectrum distribution.
Since 2021, Starlink has encountered multiple regulatory obstacles when trying to enter the Indian market. The Indian government’s decision to bypass auctions in spectrum allocation led to new partnerships, marking a significant industry development. These deals need government approval to proceed, but their successful clearance would transform internet access, specifically in rural locations without traditional broadband connections.
The two telecom companies intend to unite Starlink technology with their current network infrastructure. The retail network of Jio will sell Starlink equipment alongside offering installation assistance to customers, and Airtel might follow a similar strategy. Airtel views this partnership as an addition to their current relationship with satellite broadband provider Eutelsat OneWeb.
The recent agreements between Starlink and these telecom companies emerge during active U.S.-India trade talks and potential Biden administration tariff responses. The experts believe India chose Musk’s spectrum preference because of both economic and geopolitical considerations.
India holds the position of being the second-largest internet market while 670 million people still lack internet access. The high costs of satellite broadband service prevent it from serving as a solution to connect the unconnected population. The combination of Starlink service with Jio and Airtel partnerships would potentially lower monthly fees from $150 to 3,000 rupees ($36) to make the service accessible for Indian consumers.
The policy change seems to have prompted Jio and Airtel to adopt this strategic move. The move provides Musk with an enormous chance to serve the world’s biggest mobile user population.