Starlink gains entry into India, but these two guys hold the key to success

Elon Musk has finally gotten what he wanted—Starlink is entering India. But this isn’t just about expanding satellite internet. The deal only happened because Musk secured partnerships with Mukesh Ambani and Sunil Mittal, the two most powerful men in India’s telecom industry.

Reliance Jio and Airtel, the companies they control, will now play a direct role in distributing Starlink services across the country. Musk has been pushing for this for years, but things changed after his meeting with Prime Minister Narendra Modi in Washington, D.C., last month.

Musk emphasized the importance of global internet access, particularly in India, the world’s most populated country. After that meeting, the Indian government allowed SpaceX to move forward with telecom deals that had previously been stalled.

This wasn’t just about internet access. Musk’s growing influence in Washington played a role, as India and the U.S. have been negotiating trade terms, but those talks have gone nowhere. President Donald Trump recently announced new reciprocal tariffs on India, starting April 2, further complicating relations between the two countries. However, the Starlink deal shows that while trade negotiations might be stuck, Musk’s business interests are moving forward.

For Musk, the deal solves multiple problems at once. He gets access to a massive, mobile-first market without having to fight against local telecom giants. Instead, Jio and Airtel will handle the rollout, effectively making them partners rather than competitors. Ambani and Mittal, both known for their control over India’s telecom industry, now hold the key to how Starlink expands in the country.

India’s telecom giants already had satellite plans

There’s a catch. Jio and Airtel weren’t exactly waiting for Starlink to arrive. Reliance Jio already had a joint venture with SES, a satellite operator based in Luxembourg, to bring satellite internet to India. Airtel has a partnership with Eutelsat OneWeb, another satellite broadband provider. Now that Starlink is involved, what happens to those plans? That hasn’t been made clear yet.

The advantage of Starlink is its ability to provide high-speed internet to rural and remote areas where traditional telecom infrastructure is weak. Neil Shah from Counterpoint Research explained that the partnership allows Jio and Airtel to reach areas where their networks don’t currently exist. Instead of building expensive new towers, they can sell Starlink’s satellite-based service to local customers.

“Starlink should provide a great boost … particularly in rural and remote areas of India, where traditional telecom networks don’t do especially well,” said Pravin Krishna, a professor of international economics at Johns Hopkins University.

But the deal also raises concerns. Musk has always been vocal about his long-term plans for satellite communication. If Starlink proves successful in India, will Jio and Airtel continue to push their own satellite projects? Or will they focus on making Starlink the dominant player in the market? The partnerships might work for now, but long-term competition is still a possibility.

Regulatory hurdles and pricing problems

Even with partnerships in place, Starlink isn’t officially in yet. The company still needs to obtain a communications license from the Indian government. The approval process is ongoing, but Starlink has yet to clear the final regulatory hurdles. If the government delays or imposes additional requirements, Jio and Airtel may have to reconsider their level of commitment to the project.

Pricing is another problem. Starlink currently costs $110 per month in the U.S. That’s far more expensive than Jio’s cheapest WiFi package, which costs less than that in an entire year. If Starlink wants to be widely adopted in India, prices will need to drop significantly.

“While there is an opportunity to connect a lot of people to the internet, pricing will challenge Starlink’s ability to scale,” said Shah.

That’s where government incentives and local subsidies could come into play. If the Indian government supports broadband expansion, lower-income areas might receive financial assistance to make the service more affordable. Musk’s new billionaire allies could also step in to help shape the business model.

There’s also the issue of technical limitations. Starlink’s satellite network requires a clear line-of-sight, meaning weather conditions and dense urban environments could cause disruptions. Analysts at Citi believe Starlink will be better suited for rural areas rather than high-density cities, where existing telecom networks already dominate.

“We reckon satellite networks would be more suited for servicing remote rural areas where there are coverage gaps rather than high-density urban areas where satellites may not be able to match terrestrial networks in terms of capacity and coverage,” Citi analysts wrote.

Investors are paying attention, and Amazon is making moves

India’s venture capital market is exploding. Total investments in Indian startups reached $13.7 billion in 2024, a 40% increase from the previous year, according to Bain & Company. The number of deals rose 45% to 1,270, compared to 880 in 2023. The consumer tech sector attracted the most investment, while industries like banking and retail also saw rapid growth.

Amazon is also making a big shift in India. The e-commerce giant is reportedly in talks with JPMorgan and Indian investment banks to list its Indian unit. If the listing happens, Amazon will be able to hold inventory in India, instead of just acting as a marketplace for sellers and buyers. This would allow the company to expand its operations and compete more directly with local Indian e-commerce businesses.

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