India: Elon Musk’s Starlink signs deal with Airtel

Elon Musk’s Starlink has partnered with Airtel, India’s second-largest telecom provider, to introduce satellite internet services to the country, setting the stage for intensified competition with Mukesh Ambani’s Reliance Jio.

Under the agreement, Starlink will leverage Airtel’s retail store network to distribute its devices across India. However, the deal is subject to regulatory approval before Starlink can begin operations in the country.

Airtel stated on Tuesday that both companies would explore using each other’s network infrastructure to improve coverage, though details were not disclosed. Additionally, Airtel will consider offering Starlink services to its business and other customers.

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The partnership follows a meeting between Indian Prime Minister Narendra Modi and Elon Musk in Washington, where they discussed key topics such as space, mobility, technology, and innovation.

Starlink, which has been eager to establish operations in India, recently found itself in a dispute with Ambani’s Reliance Jio over the allocation of satellite spectrum. While Reliance advocated for an auction, the Indian government sided with Musk’s stance that spectrum should be allocated administratively, aligning with global practices. Analysts suggest an auction would require significant investment, potentially discouraging foreign players.

Ambani has expressed concerns that Starlink’s entry could impact Reliance Jio, which invested $19 billion in airwave auctions. There is speculation that Starlink could attract broadband customers and, in the long run, even challenge Jio’s data and voice services.

Airtel already has a similar distribution partnership with global satellite company Eutelsat, where its parent company holds a stake. 

Meanwhile, Eutelsat’s OneWeb and Reliance Jio have secured approval from India’s space regulator to launch commercial satellite broadband services in the country.

(Reuters)

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