Elon Musk has achieved a significant milestone in India by securing two major deals to bring SpaceX’s Starlink satellite internet services to the country.
India’s leading telecom provider, Reliance Jio, owned by billionaire Mukesh Ambani, announced on Wednesday that it had struck a deal with SpaceX. As part of the agreement, Jio will offer Starlink equipment at its retail outlets and will set up a system to support customer service, installation, and activation.
A similar deal was signed a day earlier with Bharti Airtel, the country’s second-largest mobile operator.
Gwynne Shotwell, SpaceX’s president, expressed excitement about partnering with Airtel and Reliance Jio to improve connectivity in India. However, the agreements are subject to regulatory approval before Starlink can proceed with its operations.
According to Neil Shah, a vice president at Counterpoint Research, Starlink’s strategy to enter the Indian market through partnerships is wise. He stated that to succeed in India’s attractive market, collaborations with local companies are more effective than direct competition. He emphasized that both Jio, Airtel, and Starlink rely on each other to succeed in this venture.
Satellite internet remains in its early stages in India, where many rural areas are still underserved in terms of connectivity. Success in this market, which is expected to have higher costs than traditional broadband, will depend largely on pricing strategies.
Airtel had previously formed a similar partnership with France’s Eutelsat OneWeb, another satellite internet provider, which, like Starlink, offers global coverage using low Earth orbit satellites.
These deals come shortly after a meeting between Indian Prime Minister Narendra Modi and Elon Musk in Washington, D.C., where they discussed space, technology, and innovation.
Musk has been working to establish a foothold in India for several years. His electric vehicle company, Tesla, has been attempting to enter the Indian market since 2017, but delays in negotiating lower import duties have stalled the process. Recently, it was reported that Tesla has signed a lease for a showroom in Mumbai to sell imported cars.
Musk had planned to visit India last year, but canceled his trip due to his commitments with Tesla. He was expected to announce a major investment of at least $2 billion in manufacturing facilities, but that plan did not materialize.