India’s leading telecom operator, Reliance Jio, has signed a deal with Elon Musk’s SpaceX to bring Starlink satellite internet services to the country in a surprising turn of events.
This partnership follows months of contention between the two billionaires over spectrum allocation policies.
As part of the agreement, Reliance Jio will stock Starlink equipment in its retail stores, providing a widespread distribution network for the satellite internet provider. The deal gives Starlink direct access to thousands of outlets across India, significantly boosting its market entry.
Mukesh Ambani and Musk had previously clashed over how New Delhi should allocate airwaves for satellite internet services. Ultimately, the Indian government supported the method advocated by Musk, favoring administrative allocation over auctions. Despite earlier concerns that Musk’s entry could disrupt the telecom landscape, the partnership allows Ambani to distribute Starlink products while simultaneously competing with them.
Industry analysts see this as a strategic move. “It’s a win-win for both parties. They were rivals fighting for market control, and now they’re cooperating and sharing the space,” said Neil Shah, co-founder of research firm Counterpoint.
The agreement follows a similar deal between Starlink and Bharti Airtel, India’s second-largest telecom provider, announced just a day earlier. However, both deals are contingent on government approval for Starlink’s commercial operations.
The Indian satellite services market is poised for rapid growth, projected to expand by 36% annually to reach $1.9 billion by 2030, according to Deloitte. Starlink has been awaiting operating licenses since 2022, with delays attributed to national security concerns.
Jio Platforms, which oversees Reliance Jio’s digital operations, will provide installation and activation support for Starlink devices. The two companies are also exploring further collaboration, leveraging their respective infrastructures for broader connectivity solutions.
The deal marks another significant step for Musk in India, following an agreement to establish Tesla’s first showroom in the country. However, challenges remain, including high import tariffs on Tesla vehicles and regulatory hurdles for Starlink’s commercial deployment.
With Starlink’s vast global network and SpaceX’s frequent satellite launches, industry experts believe the Jio partnership will strengthen Starlink’s regulatory standing in India. “This deal enhances Starlink’s position and facilitates smoother approvals,” said Chaitanya Giri, Space Fellow at the Observer Research Foundation.
While Jio has an existing satellite internet venture with Luxembourg-based SES, the collaboration with Starlink adds another dimension to India’s evolving broadband landscape. Previously, Ambani had pushed for spectrum auctions, arguing that Jio had invested $19 billion in airwave purchases. However, with the government favoring Musk’s administrative allocation approach, the deal represents a shift towards cooperation in the rapidly expanding satellite internet sector.
