India’s Jio and Airtel ink deals to bring in Musk’s Starlink

India’s largest telecoms company Reliance Jio and its rival Bharti Airtel have signed separate deals with Elon Musk’s SpaceX to bring the Starlink internet service to the country.

The move has caught most analysts by surprise, as Musk has publicly clashed with both companies recently.

It comes as Indian and US officials discuss a trade deal. US President Donald Trump has threatened to impose retaliatory tariffs on 2 April.

The agreements, touted to expand satellite internet coverage across India, are still conditional upon SpaceX obtaining the Indian government’s approval to begin operations.

Starlink had 4.6 million subscribers across the world, as of 2024.

SpaceX has been aiming to launch services in India since 2021, but regulatory hurdles have delayed its arrival.

Both Jio and Airtel say they will leverage their mobile network along with Starlink to deliver broadband services to communities and businesses across the country, including in rural and remote regions.

Jio will offer Starlink equipment in its retail outlets and online stores along with providing installation support for the devices, while Airtel says it is exploring the same.

Airtel also says the tie-up, along with an existing deal with Starlink rival Eutelsat OneWeb, would help to expand its connectivity.

Many had not anticipated Starlink’s simultaneous deals with Jio Platforms and Airtel.

Up until the announcement, Jio was seen as Starlink’s biggest competitor in India’s satellite broadband market.

Billionaires Mukesh Ambani and Sunil Bharti Mittal, who own Jio and Airtel respectively, had jointly opposed Musk’s demand to administratively allocate satellite spectrum.

Mr Musk had argued that spectrum should be allotted as this would align with international standards.

Ambani and Mittal had wanted it to be auctioned instead in a competitive bidding process.

Last October, in a major win for Musk, the Indian government announced that spectrum would be allocated administratively.

The tie-ups come off the back of that policy and Musk’s meeting with Indian Prime Minister Narendra Modi in Washington last month, during which they discussed cooperation in areas of space technology and mobility.

Musk’s influence on the US government is “sky-high” and “probably a good reason why Delhi took a contrarian position with respect to Jio’s ask for spectrum auction rather than allocation, which is rare”, says Prasanto K Roy, a technology analyst.

India is the world’s second largest internet market but more than 670 million of its 1.4 billion people have no access to the internet, according to a 2024 report by GSMA, a trade body representing mobile network operators worldwide.

Satellite broadband provides internet access anywhere within the satellite’s coverage.

This makes it a reliable option for remote or rural areas where traditional services like DSL – a connection that uses telephone lines to transmit data – or cable are unavailable. It also helps to bridge the hard-to-reach digital divide.

“Starlink is a clear winner here,” says Tarun Pathak, an analyst at Counterpoint Research. If approved, the tie-ups give Musk access to 70% of India’s mobile users.

Musk has been “eyeing a presence [in India] because its size will also give him economies of scale” given how expensive satellite internet is, he says.

These partnerships are also a quick way for Starlink to comply with India’s data localisation laws, he adds.

For consumers, how the services are priced will be key, given mobile data in India is among the cheapest globally.

Satellite broadband plans cost around $150 a month, whereas mobile data is 150 rupees ($2; £1.33).

But a partnership with both Airtel and Jio could help bring prices down to around 3,000 rupees, says Roy.

“Also, pricing may be better from Musk’s point of view and not rock-bottom, with Jio and Airtel offering the same services,” he says.

For Airtel and Jio, the partnership with Musk is a clear result of the telecoms policy not favouring them, analysts say.

“Jio was hoping that it would raise the entry barriers for others by pressing for the auction route. But since that hasn’t happened, they must have felt it is better to change tack and do a tie-up,” says Roy.

Pathak says the Indian government, on the other hand, possibly felt it would be better to “co-operate” rather than “compete” with Musk with Trump’s tariffs looming and a trade deal under discussion.