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Mukesh Ambani’s Reliance Jio signed a deal with Elon Musk’s SpaceX to bring Starlink satellite internet services to India, a surprise move from the billionaires after being at odds for several months over how the country should grant them spectrum.
The deal follows a similar partnership announcement between Starlink and India’s No. 2 telecom player Bharti Airtel a day before.
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The Indian telecom operators will stock Starlink equipment in their retail stores, giving Starlink a direct distribution point in thousands of such outlets across the country.
Both deals are conditional upon Starlink obtaining government approval to begin operations in the country.
The agreements come weeks after Indian Prime Minister Narendra Modi met with Elon Musk in Washington, where they discussed issues including space, mobility, technology and innovation.
India’s satellite service sector
India’s satellite service sector is set to grow 36 per cent a year to $1.9bn by 2030, according to Deloitte.
“The deal creates a business modality for Starlink to make government approvals easier,” said Chaitanya Giri, Space Fellow at the Observer Research Foundation.
Starlink has been waiting since 2022 for licenses to operate commercially in India, with no clear timeline yet on a decision. It has been delayed for reasons including national security concerns.
“The advantage with Starlink is that it is a larger constellation, it benefits from SpaceX’s high rocket launch frequency, and the geopolitical heft thanks to the Trump-Musk relationship,” Giri added.
The pact is tied to certain financial terms, a source familiar with the matter said, without disclosing details.
“This is a low-cost entry model for” Starlink in India, the person added.
Jio, India’s largest telecom operator, will also provide installation and activation support for the Starlink devices, too.
Reliance said in a statement that Jio and SpaceX are also evaluating other areas of cooperation to leverage their respective infrastructure, without elaborating.
Musk and India
The stakes are high for Musk in India, where he also recently signed a deal for first Tesla showroom to sell its imported electric cars.
Yet, tariffs of over 100 per cent weigh on the carmaker, with Musk repeatedly complaining that they are among the steepest in the world.
“While it has been surprising, it’s a prudent strategy for Starlink to enter the India market and a win-win for all the parties involved earlier competing for the pie and now cooperating and sharing,” said Neil Shah, co-founder of research firm Counterpoint.
Jio Platforms, which already operates a satellite internet joint venture with Luxembourg-based SES, has secured approvals from India’s space regulator to launch commercial satellite broadband services in the country.
Ambani’s Reliance and Musk have previously clashed over the methodology of awarding spectrum for satellite services in India.
Reliance had urged an auction but the Indian government sided with Musk, who wanted it to be allocated administratively, in line with global trends.
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