Elon Musk’s ambition to introduce Starlink satellite broadband service in India is met with strong opposition from Mukesh Ambani, head of Reliance Jio and Asia’s wealthiest individual. Musk highlighted the potential of Starlink to provide essential internet access in remote villages during a meeting with Indian Prime Minister Narendra Modi.
However, the conflict between Starlink and Reliance over the distribution of satellite broadband spectrum in India remains unmentioned, setting the stage for a competitive battle between these influential figures in the satellite services sector.
All About Elon Musk’s Starlink vs Mukesh Ambani
Starlink advocates for license allocation rather than an auction, emphasizing the need to share the natural resource among multiple companies and warning of potential geographical restrictions and increased costs associated with an auction. On the contrary, Reliance argues for an auction to ensure fair competition with foreign satellite service providers and safeguard the interests of Indian firms. The rivalry intensifies as Reliance continues to push for a spectrum auction, resisting the demands of foreign companies.
The stakes are high for Musk, given the regulatory issues faced by Starlink in a previous attempt to launch in India in 2021 and his ongoing discussions with the country for establishing a Tesla factory. Ambani sees keeping foreign competition out of the satellite broadband market as an opportunity to further strengthen Reliance Jio’s dominant position in the telecom sector, which already boasts millions of users and a significant market share in wired broadband connections.
Similar to Starlink, Amazon’s Project Kuiper and the British government-backed OneWeb support the perspective of license allocation. However, Amazon refrains from commenting on the matter and attempts to obtain responses from Indian authorities and relevant companies remain unanswered.
According to India’s Koan Advisory, out of the 64 responses received during the public consultation on satellite spectrum, 48 expressed support for licensing, 12 advocated for an auction, and the rest maintain a neutral stance. Reliance believes that allowing established foreign players like Starlink to operate without an auction could lead to their “runaway success” similar to Amazon, which would adversely impact Indian firms and create an uneven playing field.
While Reliance Retail and Amazon have clashed in the e-commerce space, Reliance still trails behind its U.S. rival in market share. Deloitte projects significant growth in India’s satellite broadband service market, reaching $1.9 billion by 2030 with a 36% annual growth rate. Starlink, with authorization in numerous countries and a growing user base, seeks clarity on India’s spectrum allocation before finalizing its commercial approach.
Foreign satellite internet companies express concerns that an auction in India could set a precedent for other countries, leading to higher costs and investments. OneWeb may face challenges in conducting business in India if an auction is conducted. Meanwhile, Starlink may consider offering free services in prominent locations to demonstrate the potential benefits India might miss out on, as suggested by Tim Farrar, an analyst at U.S.-based consultancy TMF Associates.
