Elon Musk has successfully established a presence in India’s satellite internet sector after a prolonged period of anticipation, having reached an unexpected agreement with Mukesh Ambani’s Reliance Jio to distribute Starlink equipment nationwide. This deal, revealed several months after Musk’s meeting with Prime Minister Narendra Modi in Washington, coincides with the billionaire’s increasing influence in the United States and growing apprehensions regarding India’s high import tariffs on Tesla vehicles. For an extended period, Musk and Ambani had differing views on the allocation of airwaves for satellite internet in India. While Reliance advocated for an auction-based approach, the Indian government ultimately favored Musk’s preferred method of administrative allocation. In a notable strategic development, Jio will now offer Starlink equipment in thousands of retail locations, representing a significant advancement for both entities.
The agreement between Starlink and Jio follows a similar arrangement between SpaceX and Bharti Airtel, the second-largest telecom operator in India. Both collaborations are subject to government approval, a process that has hindered Starlink’s entry into the Indian market since 2022. A source informed Reuters that this partnership represents a low-cost entry strategy, which could facilitate Starlink’s navigation through regulatory challenges. Musk’s ambitions in India encompass more than just satellite internet. Tesla has recently finalized a deal for its inaugural showroom in the country, yet it continues to face challenges due to import tariffs that exceed 100%. The collaboration with Jio may assist Starlink in obtaining more favorable regulatory approvals, with analysts suggesting that the political environment—particularly Musk’s connections to former President Donald Trump—could influence the outcome. Chaitanya Giri, a Space Fellow at the Observer Research Foundation, remarked to Reuters that Starlink’s advantages include its extensive satellite constellation, the high frequency of SpaceX’s rocket launches, and the geopolitical weight derived from the Trump-Musk relationship.India’s satellite broadband industry is anticipated to expand at an annual rate of 36%, reaching a value of $1.9 billion by 2030, indicating significant potential. Although Ambani’s Reliance Jio has already established a satellite broadband partnership with SES, a company based in Luxembourg, its collaboration with Starlink represents a shift towards a new era of partnership rather than outright rivalry.
