Elon Musk has made significant strides in India by finalizing two key agreements that will bring SpaceX’s Starlink satellite internet services to the country. This development marks an important milestone as India continues to enhance its connectivity landscape.
The proposed partnerships involve India’s leading telecommunications provider, Reliance Jio, which is owned by billionaire Mukesh Ambani. On a recent Wednesday, Reliance Jio announced it had signed a formal agreement with SpaceX to offer Starlink services. According to their statement, Jio plans not only to sell Starlink hardware at retail locations but also to set up a support system for customer service, installation, and activation of the service.
Additionally, just a day prior, another agreement was reported with Bharti Airtel, India’s second-largest mobile operator. Gwynne Shotwell, the president of SpaceX, expressed enthusiasm about collaborating with both Airtel and Reliance Jio to bolster connectivity in India. However, before these agreements can be fully realized, Starlink must receive the necessary regulatory approvals.
Neil Shah, vice president at Counterpoint Research, commented on Starlink’s entrance into the Indian market through partnerships, deeming it a wise approach. He suggested that to effectively tap into India’s growing market, collaboration with local companies is essential instead of just competition. He emphasized that both Jio, Airtel, and Starlink can benefit significantly from these partnerships in driving market growth.
Despite the promise that satellite connectivity holds, the sector in India is still in its infancy. With the country being the most populous globally, many rural residents still live in areas that are difficult to connect. According to Counterpoint, the success of satellite internet in India will heavily rely on pricing, which is currently perceived to be higher compared to traditional broadband options.
Moreover, Bharti Airtel has already partnered with Eutelsat OneWeb, another satellite internet provider that delivers global coverage using low Earth orbit satellites, indicating a growing trend in the sector.
The announcement surrounding these SpaceX deals follows a meeting between Indian Prime Minister Narendra Modi and Elon Musk in Washington, D.C., where they discussed topics related to space, technology, and innovation. The dialogue between these influential figures reflects a shared interest in developing India’s technological landscape.
Elon Musk has been eyeing the Indian market for several years. His electric vehicle company, Tesla, has aimed to enter the Indian automotive industry since around 2017. However, progress has been slow, mainly due to challenging negotiations regarding import duties with the Indian government. Recently, reports indicated that Tesla signed a lease for a showroom in Mumbai, allowing them to offer imported vehicles.
Musk’s commitment to exploring opportunities in India has faced setbacks as well. He had plans to visit the country last year but ultimately canceled, attributing the change to pressing responsibilities with Tesla. During that time, he was expected to announce an investment of at least $2 billion aimed at establishing manufacturing facilities in India, although that initiative did not come to fruition.
As these partnerships unfold, they represent an important step toward enhancing digital connectivity in India, particularly in underserved regions. With the backing of established local players like Reliance Jio and Bharti Airtel, SpaceX is poised to make a significant impact on India’s satellite internet landscape.