With Bharti Airtel and Elon Musk’s SpaceX sealing a deal to launch Starlink’s high-speed satellite internet in India, all eyes are now on Reliance Jio—the market leader led by Mukesh Ambani.
Previously, Ambani and Sunil Bharti Mittal had aligned to push for an auction-based allocation of satellite communication (satcom) spectrum, opposing Starlink’s demand for administrative allocation—a model Musk and other global firms like Amazon’s Project Kuiper supported. Musk had even criticized Ambani’s stance, as Starlink’s low-Earth orbit (LEO) satellites could pose a significant threat to traditional telecom networks by offering broadband speeds on par with terrestrial services.
Telecom companies argued that satellite operators should pay existing spectrum fees to prevent “market distortions.” High spectrum fees, they claimed, would limit satellite firms from offering cheaper tariffs. However, the Indian government has ruled in favor of administrative spectrum allocation, with Telecom Minister Jyotiraditya Scindia stating last year, “Satellite spectrum across the world is allocated administratively. So, India is not doing anything different.”
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Despite this, Jio urged the government to reconsider, arguing that satcom spectrum should be auctioned like terrestrial services to ensure a “level playing field.” Jio also raised concerns with the Telecom Regulatory Authority of India (TRAI), warning that administrative allocation could distort competition, particularly in urban and semi-urban areas.
Jio introduced JioSpaceFiber, India’s first satellite-based giga-fiber service, in 2023, in collaboration with Luxembourg-based SES. However, the service can only launch once the government finalizes spectrum allocation. Meanwhile, Airtel has been preparing for Starlink’s rollout, building ground stations in Gujarat and Tamil Nadu, and tapping into its 635-satellite network already in operation worldwide.
This clash echoes the telecom disruption triggered by Jio’s 4G launch in 2016, which led to the collapse of several telcos and the merger of Vodafone and Idea. Jio had previously accused Airtel of obstructing its entry into the market and opposed government relief measures for debt-laden operators like Airtel and Vodafone Idea.
As of December 2024, Jio remained India’s broadband leader with 476.58 million subscribers, followed by Airtel (289.31 million) and Vodafone Idea (126.38 million). While Ambani and Mittal were once seen as united against Musk, Airtel’s Starlink deal has reshaped the battle lines.
Airtel Managing Director and Vice Chairman Gopal Vittal stated, “Working with SpaceX to offer Starlink to Airtel customers in India is a significant milestone and further demonstrates our commitment to next-generation satellite connectivity.” He added that Starlink would enhance Airtel’s broadband offerings, ensuring “reliable and affordable connectivity” across the country.
With thousands of LEO satellites, Starlink aims to bridge the connectivity gap in remote areas lacking traditional infrastructure, providing a formidable challenge to Jio’s dominance. The question remains: Can Jio withstand Airtel-Starlink’s satellite revolution?