SpaceX’s Starlink has made a significant move in expanding its satellite internet services by signing a deal with India’s second-largest telecom company, Airtel. This partnership will allow Starlink to leverage Airtel’s extensive retail network to distribute its devices across the country, pending government approval.
According to a report by Reuters, the agreement also involves exploring opportunities for sharing network infrastructure to enhance coverage in India. While specific details of this collaboration were not disclosed, Airtel expressed its interest in offering Starlink services to its business and individual customers.
The timing of this partnership coincides with Indian Prime Minister Narendra Modi’s recent meeting with Elon Musk in Washington, where they discussed various topics including space exploration, mobility, and technology. The entry of Starlink into the Indian market poses a significant challenge to Mukesh Ambani’s Reliance Jio, as the two companies had previously clashed over the allocation of satellite spectrum.
Reliance Jio had advocated for an auction-based allocation process, while Elon Musk’s Starlink favored administrative allocation, which aligns with global practices. The Indian government ultimately supported Musk’s approach, citing potential barriers to foreign investment associated with auction-based systems.
Mukesh Ambani is reportedly wary of Starlink’s potential to attract broadband customers away from Reliance Jio, potentially impacting its data and voice service offerings in the long run. Despite this competition, Airtel has already established a distribution partnership with global satellite provider Eutelsat, in which its parent company holds a stake.
On the other hand, Eutelsat’s OneWeb and Reliance Jio have received regulatory approval in India to launch commercial satellite broadband services. With these developments, the telecom industry in India is poised for significant transformation as leading players vie for market share in the rapidly evolving landscape of satellite internet services.
Overall, the collaboration between Starlink and Airtel marks a pivotal moment in the expansion of satellite internet services in India, promising improved connectivity and competition in the telecom sector. As the partnership progresses, it will be interesting to see how both companies leverage their strengths to deliver innovative solutions to consumers across the country.