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Billionaire Mukesh Ambani-controlled Jio Platforms Ltd. announced a surprise pact with SpaceX to offer Starlink Inc.’s satellite Internet services in India, a day after rival Bharti Airtel Ltd. unveiled a similar arrangement.
The twin deals essentially turn Elon Musk’s Internet service from challenger to ally of India’s powerful wireless carriers, underscoring his growing global influence as US President Donald Trump’s close adviser. It also marks a volte-face by Ambani’s Jio and Bharti — controlled by tycoon Sunil Mittal — which were earlier opposed to the idea of Starlink getting airwaves cheaply.
The tie-ups are subject to SpaceX receiving regulatory approval to sell Starlink in India. Yet it shows a recognition by the two Indian billionaires that the arrival of Musk’s companies in the world’s most-populous country is inevitable, and that they don’t want to take him on in a straight fight.
Tesla is also gearing for its India entry by shipping thousands of cars to the country and setting up showrooms.
“Reliance Jio and Bharti are no longer treating satellite broadband as a threat but as core infrastructure they can lease,” said Utkarsh Sinha, managing director at Bexley Advisors, a boutique investment bank firm. “This move ensures they remain gatekeepers of India’s Internet expansion, even as Starlink scales.”
The new deal agreement will see Ambani’s firm offer Starlink equipment through its retail outlets as well as through its online storefronts, a Jio statement said Wednesday. The two companies will also explore how they can boost each other’s offerings.
Crucial Market
While Starlink has collaborated in developing nations — in Indonesia for offering internet and with the MTN Group for satellite trials across Africa — the India market is far more crucial for Musk’s businesses as Starlink continues to be shut out of China and Tesla Inc. sees declining sales.
The world’s richest man is also seeing his growing political notoriety affect sales in places like Europe and Canada.
The Indian government’s decision in October last year to allocate satellite spectrum at a pre-decided price stoked fears that Starlink may compete with terrestrial networks and chip away some of Reliance Jio Infocomm Ltd. and Bharti’s subscriber base. Reliance Jio and Bharti are India’s two largest wireless carriers.