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Billionaire Mukesh Ambani-controlled Jio Platforms Ltd. announced a pact with Elon Musk’s SpaceX to offer Starlink Inc.’s satellite internet services in India, a day after rival Bharti Airtel Ltd. signed a similar arrangement.
This agreement “is subject to SpaceX receiving its own authorizations to sell Starlink in India,” Jio Platforms said in a statement Wednesday. Ambani’s firm will offer Starlink equipment through its retail outlets as well as through its online storefronts. Jio and SpaceX will also explore how they can boost each other’s offerings.
Ambani’s Reliance Jio Infocomm Ltd. is India’s largest wireless carrier while Sunil Mittal-led Bharti is the no. 2 player in the world’s most-populous nation where data usage is rapidly rising.
Shares of Reliance Industries Ltd., Jio’s parent, rose as much as 1.3% while Bharti surged as much as 3.3% during Mumbai trading before paring most of the gains.
The back-to-back pacts point to a volte-face by the India’s incumbent wireless carriers, which were earlier opposed to Starlink getting airwaves at a price lower than what they had paid via auctions in the past.
The Indian government’s decision October last year to allocate satellite spectrum at a pre-decided price drew widespread local resistance on fears that Starlink may compete with terrestrial networks and chip away some of their subscriber base.
Musk’s Clout
The collaborations announced over the past 24 hours underscore Musk’s growing political and business clout given his position in the current US administration. Musk, the world’s richest person, met Indian Prime Minister Narendra Modi in the US last month where they discussed “space, mobility, technology and innovation.”
The Indian government faces the task of luring foreign investment from heavyweights like Musk and balancing it with the demands of local giants amid broader trade deal negotiations with the US.
Starlink, however, has a few hoops to jump through in India before rolling out its services. It needs approvals from the India’s telecom and the home ministries.
The local telecom regulator is also yet to announce the price satellite-internet firms need to pay for securing airwaves — a key element that will influence the cost of a Starlink connection for consumers in India.
