In a stunning turn of events, Starlink, the satellite broadband company run by Elon Musk, is set to enter India in partnership with two Indian telecom majors that had previously opposed its entry. It has formed separate partnerships with Reliance Jio (through Jio Platforms) and Bharti Airtel. Moreover, Vodafone Idea has informed the stock exchanges that it is also in discussions with Starlink for some sort of a partnership. Therefore, Starlink, which has been attempting to enter India since 2021, may soon be in the country in partnerships with all three private operators.
Until two months ago, Starlink’s entry was being opposed by Jio and Airtel, and objections were being raised on several grounds. The most significant concern was that satellite spectrum would be allocated administratively, even though satellite service providers would be required to pay charges. The second issue was that Starlink might provide retail services.
Jio and Airtel both wanted an auction process, similar to the process followed in India for the allocation of other spectrum bands, whereas Starlink argued that satellite spectrum should be allotted administratively as this would align with international standards. The legal debate over administrative allocations versus auctions was resolved by legislative changes to the relevant act.
Despite this, the objections persisted. Subsequently, Prime Minister Narendra Modi visited Washington to discuss Indo-US trade with the new administration. Musk met Modi during the visit and reportedly discussed cooperation between India and the US in the areas of space technology and mobility. India was already a signatory to the Artemis Accords, making it a partner of the US space agency NASA, and opening up many opportunities for aerospace cooperation for Indian firms.
The agreements with Airtel and Jio followed. Jio and Airtel signed separate agreements with SpaceX, the company that runs Starlink, to bring Starlink internet services to India.
The agreements remain conditional upon SpaceX obtaining the Indian government’s approval to begin operations. India’s strict telecom and space regulations pose challenges. Companies must secure multiple approvals for spectrum allocation, local data storage compliance, security clearances and landing rights. Previously, Starlink faced regulatory bottlenecks when it attempted to offer pre-bookings without obtaining proper licences.
However, it is not expected to be a problem any more. Apart from the meeting, which indicates approval at the highest policy levels, the Indian partners understand regulatory processes very well. They can ensure compliance and cut through the red tape, helping Starlink comply with local laws and meet security concerns.
Jio and Airtel have both said they will leverage their extensive mobile networks along with Starlink to deliver broadband services to communities and businesses in rural and remote regions, where satellite coverage may be more feasible than conventional terrestrial services.
Jio has stated that it will offer Starlink equipment to consumers through its retail outlets and online stores, along with installation support. Airtel is exploring a similar model. According to Airtel, this tie-up, along with an existing deal with Starlink’s rival Eutelsat OneWeb, will help expand connectivity.
As of 2024, Starlink had 4.6 million subscribers across the world, and that may have grown to around 5 million by now, according to the company. Apart from the fact that India is a huge market, the deal is especially important for SpaceX amid the ongoing trade wars between the US and Europe/Canada.
Europe is reportedly looking at alternatives to Starlink, in the wake of tariff impositions by the US and retaliatory tariffs imposed by EU nations on US companies. Starlink has already lost a deal worth $800 million in Canada’s Ontario province due to the tariff war and Europe is exploring alternatives, particularly for its
defence applications.
European governments are also seeking alternatives that are less vulnerable to trade and tariff disruptions. The higher costs for communication and network capacity to navigate geopolitical tensions in the region can be offset by the added resilience they provide.
The EU’s IRIS² project, aimed at creating a fleet of low earth and medium earth orbit satellites, was approved in December, with the EU set to contribute €6 billion of public money out of the total cost of €10.6 billion over 12 years. French satellite operator Eutelsat, which owns One Web and is a partner of Airtel, is a key part of IRIS².
For India, the technology could address the challenges in expanding the national internet footprint. India has many remote regions with difficult terrain such as the Himalayan belt, the hilly and forested Northeast, the Western and Eastern Ghats, forests and island archipelagos. As per GSMA estimates, around 670 million Indians, roughly half the population, lack reliable internet access. It would be logistically difficult and expensive to set up terrestrial networks to extend connectivity to such areas.
Satellite coverage is the most viable option, which could facilitate economic activity and trade. Prior to the Starlink deals, Jio had already signed an agreement with Belgium’s SES, while Airtel had a connection with Eutelsat OneWeb. So, both operators were already prepared to offer satellite services.
However, Starlink technology provides some advantages. Starlink uses a constellation of 7,000 satellites in low earth orbit (LEO) to run its internet services. The signals are bounced off LEO satellites, ensuring lower latency compared to medium earth orbit, which is used by other satellite broadband operators.
As a result, Starlink runs at faster speeds of up to 220 Mbps with low latency. It also offers multiple plans to cater to users with different needs. Subscribers pay upfront for the equipment and are charged monthly fees. This contrasts with most US internet service providers, which lock in users in long-term contracts.
There are open questions about technology, marketing strategies and pricing, which the new partnerships must address. The Starlink kit includes a dish and a terminal for fixed access, while additional hardware is required to support internet access in vehicles, boats, aircraft, etc. If Starlink users are on the move, they need compatible devices. Ideally, they should be able to switch seamlessly from satellite broadband to terrestrial networks on the same handset. Only a few high-end devices are compatible with both services and this could be a sticky point for adoption.
Where marketing is concerned, all sorts of models are possible, such as co-branding or rebranding services in various ways. Pricing may be the key component of any strategy in a highly price-sensitive market like India. Apart from the initial kits, which cost upwards of $350, existing satellite broadband plans cost around $150 a month in the US, whereas mobile prepaid data in India is available for Rs 150 (less than $2).
Starlink does offer heavily discounted rates in Kenya (around $10 equivalent per month) to help build a subscriber base. In addition, it offers services in Bhutan for the equivalent of Rs 3,000-Rs 4,500 per month for individual/residential users. Airtel and Jio could help Starlink structure pricing in a manner that brings down the costs for Indian subscribers. Significantly, there is a 30 per cent tax on foreign digital services in India, which could increase prices unless the partnerships find a way around this.
Reports suggest that Bharti Airtel and Jio Platforms are taking different approaches. Airtel will focus on using the satellite technology to complement its existing broadband services and expand connectivity in rural areas. Meanwhile, Jio plans to integrate Starlink into its broadband ecosystem and offer it directly to end-users through its retail and online channels.
The ability to bypass traditional infrastructure has broader, long-term connotations. It may also enable the speedy completion of the ambitious BharatNet project because it can link panchayats in inaccessible regions. While it would initially be used to provide connectivity only in difficult terrain, satellite broadband could eventually emerge as a rival to terrestrial networks, if costs come down.
Starlink’s presence in India, along with SES and Eutelsat, could transform key sectors such as education, healthcare, agriculture and disaster management. The commercial implications of this could be tremendous, enabling 700 million Indians who lack reliable connectivity to leapfrog straight into the digital economy. This shift to inclusive digital access and its positive externalities will, of course, ultimately depend on effective implementation. The details, it is hoped, will slot into place.
Devangshu Datta
