On March 11, Reuters reported that Elon Musk's Starlink has reached an agreement with India's second-largest telecommunications company, Airtel, to introduce Starlink's internet services in India, intensifying competition with Mukesh Ambani's Reliance Jio.
Under the deal, Starlink will leverage Airtel's extensive retail network to distribute its devices across India, pending government approval to operate in the country. Airtel announced that the collaboration may involve sharing network infrastructure to enhance coverage and is considering offering Starlink services to its commercial and individual clientele.
The partnership between the two companies follows Indian Prime Minister Narendra Modi's recent visit to Washington, focusing on various sectors such as space, mobility, technology, and innovation.
Starlink's entrance into the Indian market comes amidst disagreements with Reliance Jio over the spectrum allocation for satellite services. While Reliance pushed for an auction, Musk advocated for an administrative allocation in alignment with global practices. An auction-based approach, requiring substantial investment, could discourage foreign competitors.
Concerned about losing broadband subscribers to Starlink, Ambani's Reliance Jio, which spent $19 billion in airwave auctions, aims to retain its market share. Airtel also has a distribution agreement with the global satellite company Eutelsat, in which its parent company holds a stake.
Reliance Jio and Eutelsat's OneWeb have already obtained regulatory approval from India's space authority to launch commercial satellite broadband services in the country.