The Indian satellite broadband sector is rapidly turning into a battleground, as two of the wealthiest men on the planet — Elon Musk and Mukesh Ambani — gear up for a fierce competition. Both are vying for dominance in a country with millions still lacking internet access, especially in rural and remote areas.
India’s recent policy decision to allocate satellite spectrum administratively rather than through auctions has fanned the flames of competition between Starlink (Musk’s company) and Reliance Jio (Ambani’s telecom powerhouse). This administrative allocation aligns with global practices but challenges the auction-based model favored by Ambani.
The Rivals: Starlink vs. Jio
- Starlink, with its low-Earth orbit (LEO) satellites, boasts faster speeds but faces higher operational costs. Musk’s network of 6,419 satellites provides services to over 4 million users worldwide.
- Jio, meanwhile, has partnered with SES Astra, using medium-Earth orbit (MEO) satellites, which offer a more cost-effective but slower system.
Musk’s Starlink has been eyeing India since 2021 but has faced delays due to regulatory issues. Now, with the new spectrum allocation model, Starlink is set to enter the market, potentially playing a major role in Prime Minister Modi’s push for foreign investment.
Musk’s LEO satellites could provide faster services, but the costs—nearly 10 times higher than traditional Indian providers—could be a hurdle. Yet, Starlink has shown flexibility, slashing prices in Kenya and South Africa, hinting at similar strategies for India.
Ambani and Reliance Jio continue to lobby for the auction model, arguing it ensures fair competition. Ambani could use an auction as a strategic move to outbid competitors like Musk, maintaining Jio’s dominance in the market.
In fact, Sunil Mittal, chairman of Bharti Airtel, has echoed this sentiment, pushing for fair competition, particularly for services targeting high-end customers.
Key Insights:
- Starlink’s LEO Satellites: Faster service but at higher costs.
- Jio’s MEO Satellites: Cost-effective but slower.
- Projected Growth: Satellite broadband users in India may reach 2 million by 2025.
As India’s digital divide continues to shrink, this competition could lead to lower costs and better services for the vast, underserved regions of the country. But it’s clear: this is just the beginning of a long-term battle between Starlink and Reliance Jio for satellite supremacy in India.