Reliance Jio has teamed up with SpaceX, the company led by Elon Musk, to introduce Starlink satellite internet services across India. This partnership, however, awaits the Indian government’s approval before SpaceX can launch its operations in the country. As part of the agreement, Jio plans to sell Starlink equipment through its retail stores and online platforms, while also offering installation assistance to customers.
This collaboration follows a past disagreement between Jio and SpaceX over how satellite frequencies should be distributed. Jio advocated for an auction, but the Indian government opted for an administrative allocation SpaceX’s preferred method, which aligns with international standards.
Jio’s move comes hot on the heels of a similar deal announced by Bharti Airtel just a day earlier. Airtel, already established in satellite communications through its OneWeb project, aims to harness Starlink’s technology to strengthen its offerings. With these partnerships, Jio and Airtel are gearing up to compete not only in traditional broadband but also in the emerging satellite internet market. Both agreements hinge on SpaceX securing the necessary governmental go-ahead to operate in India.
Gwynne Shotwell, SpaceX’s President and Chief Operating Officer, expressed enthusiasm about the collaboration, stating, “We’re excited to work with Jio and hope to get the Indian government’s approval to offer Starlink’s fast internet to more people, organizations, and businesses.”
Why Starlink Could Be a Big Deal for India
India’s internet landscape is starkly divided. Urban areas benefit from high-speed fiber optic broadband provided by major players like Jio and Airtel, yet rural and remote regions often face unreliable or no connectivity at all. Despite government efforts, only about 47% of the population enjoys stable internet access, leaving over 700 million people disconnected.
Starlink’s low Earth orbit (LEO) satellite technology offers a solution by delivering internet directly from space, sidestepping the need for traditional infrastructure like fiber cables or cell towers. This could revolutionize connectivity in hard-to-reach areas such as Himalayan villages, distant islands, and isolated rural communities, where conventional setups are impractical or too costly.
Mathew Oommen, Group CEO of Reliance Jio, emphasized the company’s mission, saying, “Our main goal is to ensure every Indian, no matter where they are, can get affordable and fast internet. Working with SpaceX to bring Starlink to India shows our dedication and is a big step toward providing smooth internet access for everyone.”
Challenges for Starlink: Cost and Rule
Starlink’s potential in India faces two critical hurdles: affordability and regulatory approval.
Currently, Starlink’s equipment costs between ₹25,000 and ₹35,000, with monthly fees ranging from ₹5,000 to ₹7,000. This is far pricier than India’s typical broadband plans, which average ₹700 to ₹1,500 per month. To appeal to a broader audience, SpaceX might need to roll out India-specific pricing or collaborate with government initiatives aimed at boosting digital inclusion.
On the regulatory front, SpaceX must tackle a complex web of requirements, including spectrum allocation, local data storage rules, security clearances, and landing rights for its satellites. The company has faced setbacks in India before, notably when it accepted pre-orders without the required licenses, leading to a temporary suspension of its services.
Jio’s Stock Price
On Tuesday, shares of Reliance Industries Ltd., Jio’s parent company, rose by 0.71%, closing at ₹1,247.25.
As Jio and Airtel vie for supremacy in the satellite internet arena, the real beneficiaries could be the millions of Indians poised to gain better connectivity. The key question remains: Can Starlink overcome India’s regulatory challenges and price its service low enough for widespread use? If it succeeds, India’s digital future could be transformed forever.
(With inputs from Reuters)