Mukesh Ambani and Sunil Mittal, two of India’s telecom giants, have each penned agreements to introduce Elon Musk’s Starlink service into India within mere hours of each other. Their moves are strengthening ties between New Delhi, Washington, and these two influential business figures.
On Wednesday, Reliance Jio, led by Ambani and known as India’s largest mobile service provider, announced its plans to collaborate and distribute SpaceX’s satellite internet service, following quickly on the heels of Mittal’s Bharti Airtel, the country’s second-largest operator. These collaborations could pave the way for Musk’s broader business ventures, like Tesla, to expand into the Indian market.
Neil Shah, co-founder of the technology consulting firm Counterpoint Research, described the deals as beneficial for all involved. He noted that Starlink’s leading services would seamlessly integrate without clashing with the well-established Indian telecom providers.
This unexpected collaboration between Musk and two of the most powerful Indian billionaires, who control much of the telecommunications market and are known for their rivalry, highlights New Delhi’s openness to collaboration with Trump’s administration and could help mitigate trade tensions.
Vivekanand Subbaraman from Ambit Capital in Mumbai pointed out that these developments are part of India’s message to the United States to pursue cooperative ventures. Subbaraman further mentioned that Musk’s influence within the US government has played a role in these deals, demonstrating strategic leverage.
The quick succession of these announcements surprised many in the industry, particularly given the prior public disagreements between Ambani, Mittal, and Musk regarding the allocation of satellite airwaves. Previously, the Indian moguls had advocated for traditional auction methods rather than the direct allocation Musk had pushed for.
Despite previous reservations about Musk gaining a foothold in India, there seems to be a shift in sentiment. Mathew Oommen, CEO at Reliance Jio, hailed the agreement with SpaceX as a significant step towards providing widespread broadband access.
These partnerships were announced shortly after the recent meeting between Modi and Trump in Washington, where technology and innovation were key points of discussion, even with Musk.
An anonymous banker in Mumbai noted the timing of these agreements as unusual, hinting that orchestrating such deals can often be a drawn-out process. The simultaneous finalization of both agreements raised eyebrows and speculation.
The Indian foreign ministry did not provide an immediate comment on the development. Meanwhile, the regulatory delay faced by Starlink compared to local satellite services might have encouraged Musk to ally with Indian telecom leaders. Many international businesses, such as General Motors and Vodafone, have previously struggled in India due to intense local competition and changing regulations.
Subbaraman remarked that although Musk could have built his own distribution network, aligning with established firms offers immediate market visibility and consumer reach.
Gwynne Shotwell at SpaceX expressed enthusiasm about partnering with Jio and obtaining the necessary governmental approvals for operations in India.
These joint ventures could address any security concerns New Delhi might have regarding Starlink’s operations, especially in sensitive border regions shared with neighboring countries. Analysts predict satellite internet will prosper most in India’s rural areas, given the prevalence of affordable 5G services in more populated regions.
Despite the high-profile nature of these partnerships, industry experts remain cautious about the economic potential of satellite internet in India due to existing extensive mobile services and economic constraints. Notably, while India boasts over a billion mobile users, it has only 41 million fixed broadband subscribers, making costly satellite options less appealing to the average consumer.
Details about Starlink’s pricing and coverage are still under discussion, with no clear timeline for rollout at this point.
Starlink’s arrival could pave the way for Musk’s other ventures, such as Tesla, in India. The automaker is recruiting for various roles in the country, hinting at plans to market its electric vehicles. However, Trump’s earlier comments skepticism about Musk establishing a car manufacturing facility in India.
Last year, Musk canceled a planned trip to India, opting instead to sign an agreement in China, yet he maintains a long-term interest in establishing a Tesla plant in India despite complaints about high tariffs.
India remains keen on attracting prestigious investors to its market, but as the Mumbai banker suggested, the nation will balance its strength in the auto sector with Musk’s premium product offerings, which may only appeal to a niche market.
