In a surprising turn of events, Mukesh Ambani’s Reliance Jio has struck a deal with Elon Musk’s SpaceX to introduce Starlink satellite internet services in India. This agreement follows months of rivalry between the two billionaires over how the country should allocate spectrum for satellite-based internet services.
Under this partnership, Reliance Jio will stock and distribute Starlink equipment through its extensive retail network across India. This move provides Starlink direct access to thousands of Jio stores, significantly boosting its presence in the fast-growing Indian market.
Previously, Ambani and Musk clashed over spectrum allocation policies, with Ambani advocating for a traditional auction-based approach and Musk lobbying for administrative allocation, a model widely adopted worldwide. Ultimately, the Indian government sided with Musk’s approach, paving the way for Starlink’s entry.
Despite concerns that Musk’s entry could disrupt the telecom industry, Jio has now taken a strategic approach by distributing Starlink’s products while competing in the same market. Industry analysts see this as a win-win situation, where former competitors are now finding ways to collaborate.
According to Neil Shah, co-founder of research firm Counterpoint, the agreement is a smart move for Starlink and benefits all involved parties, transitioning from a competitive stance to a cooperative one.
This deal follows a similar agreement between Starlink and India’s second-largest telecom provider, Bharti Airtel, announced just a day earlier. However, both Jio and Airtel’s partnerships remain subject to government approvals before Starlink can officially begin operations.
Following the announcement of the Jio-SpaceX deal, Airtel’s shares dipped by 1% in Mumbai trading, while Reliance Industries saw a slight increase in stock value.
Expanding India’s Satellite Internet Market
The collaboration between Starlink and Jio comes amid India’s growing interest in satellite internet services. During Indian Prime Minister Narendra Modi’s recent visit to Washington, he and Musk discussed potential cooperation in technology, space, mobility, and innovation.
According to Deloitte, India’s satellite internet market is projected to expand at a 36% annual growth rate, reaching a $1.9 billion valuation by 2030.
Despite Starlink’s eagerness to enter the Indian market, the company has been awaiting operating licenses since 2022. Delays have been attributed to national security concerns, among other regulatory hurdles.
A source familiar with the deal revealed that the Jio-SpaceX agreement includes certain undisclosed financial terms and will allow Reliance to offer Starlink services in areas where its own network lacks coverage. The source also described the deal as a “low-cost entry model” for Starlink in India.
Jio Platforms, the parent company of Reliance Jio, will provide installation and activation support for Starlink devices and is exploring additional collaboration opportunities with SpaceX.
Musk’s Expanding Footprint in India
Starlink operates in over 125 markets worldwide but has faced difficulties in India. Authorities recently seized two of its satellite devices, one in a conflict zone and another in a drug smuggling investigation, prompting Musk to state that Starlink is not yet operational in India.
Beyond satellite internet, Musk is also working to establish Tesla’s presence in India. A recent deal secured Tesla’s first showroom for imported electric cars, though high tariffs exceeding 100% remain a significant challenge for the company.
Analysts suggest that the Jio-Starlink agreement could help smooth regulatory approvals, easing Starlink’s entry into the Indian market. Chaitanya Giri, Space Fellow at the Observer Research Foundation, noted that Starlink benefits from SpaceX’s frequent rocket launches, its large satellite constellation, and geopolitical connections.
Jio Platforms has already secured approvals from India’s space regulator to launch commercial satellite broadband services. Previously, Ambani’s Reliance had pushed for spectrum auctions, arguing that it had invested $19 billion in airwave purchases and wanted a level playing field. However, the Indian government ultimately sided with Musk’s proposal for administrative allocation, aligning with global standards.
Despite their past disagreements, Ambani’s move to collaborate with Starlink signals a shift in strategy, as he positions Jio to both distribute and compete with Starlink’s offerings in India’s rapidly expanding satellite internet sector.
