US tech billionaire and chief administrator of the DOGE in US president Trump’s administration has literally muzzled his way into India with his broad band scheme STARLINK with his once opponents Airtel and RIL, caving in and accepting a deal not so favourable to them. However, Musk has agreed to the terms and conditions set by the government.
The TRAI will announce the details of the terms and conditions of the deal but on the face of it Star link’s prices are prohibitive as compared to the local players rates offered and will cut into competitive rates of the signatories to the deal Bharti Airtel and Jio Fiber As independent operations.
Musk literally muzzled his way into India taking advantage of the bonhomie between the US President Donald Trump and Indian premier Narendra Modi, allege critics of the deal who chose to remain anonymous.
The critics alleged that it was mysterious how the once opponents or rivals to the deal caved in signing the document as some of the terms and conditions outweighed their positive gains.
Airtel share price, RIL share price: Ambiguity over regulatory clarity may keep upside in the stocks restricted, analysts cautioned
India’s biggest telecom players, Bharti Airtel and Reliance Industries-backed Jio Platforms, will soon bring billionaire Elon Musk-led SpaceX’s Starlink satellite services to India. According to analysts, the move could boost India’s tele density, especially in the rural areas, and may be an opportunity for investors to add the two stocks on dips for long-term gains
They, however, cautioned that in the near term, ambiguity over regulatory clarity may keep upside in the stocks restricted.
A leading Indian business newspaper claimed: “Long-term investors may find attractive entry points in these stocks amid market corrections. Gradually adding these stocks during dips can enhance portfolio value, especially as telecom expansion, 5G adoption, and digital initiatives drive sustained growth prospects for Bharti Airtel and Reliance Jio.
Siddhesh Mehta, research analyst at SAMCO Securities, claimed that .
Earlier this week, Sunil Bharti Mittal-led Bharti Airtel announced its partnership with SpaceX to bring Starlink’s high-speed internet services to its customers in India.
Mukesh Ambani-backed Jio Platforms also announced a similar agreement with SpaceX, revealing that Reliance Jio will not only offer Starlink equipment at Jio’s retail outlets but also establish a mechanism to support customer service installation and activation.
The analysts at Citi Research said the deals would be more suited for servicing remote rural areas with coverage gaps than high-density urban areas where satellites may not be able to match terrestrial networks in terms of capacity and coverage.
That apart, both the telecom players could use this partnership to expand their business-to-business (B2B) connections and related offerings to enterprises and businesses in areas that otherwise lack fibre/fixed wireless access (FWA) connectivity, analysts said.
Pricing, regulatory hurdles
While the tie ups have been largely welcomed by most investors and operators, the signatory from India face regulatory and pricing pressures which do not go their way or is advantageous to them.
The agreements are contingent upon obtaining necessary regulatory approvals from the government, which had expressed concerns over privacy policies, industry sources were quoted by a leading Indian business publication. India is a cost-sensitive market and presents a challenge as Starlink’s global pricing is significantly higher than local internet rates.
According to an analysis by JM Financial, Starlink (and other satcom companies) have globally priced satellite internet plans at $10-500 per month, excluding the one-time cost for hardware (which is $250-380). This is 7-18 times more expensive than Indian telcos’ home broadband plans (i.e., FTTH/FWA) that start from $5-7/month, said the brokerage. Meanwhile, Bernstein thinks Starlink’s price is almost 10-14x higher than India’s major broadband providers. The current price, they said, is very high, especially for the target rural market.
“Unless the Indian government offers subsidies to LEO players, Starlink may struggle to compete with more affordable alternatives already available in the country,” it said.
Starlink’s satellite internet use case, thus, will focus on providing networks to rural and remote regions, complementing Bharti/Jio Fiber and AirFiber broadband business, it said.
“We believe the agreement seems limited to Bharti/Jio distributing Starlink’s satellite broadband services via their extensive retail network, mostly to B2C and B2B customers in rural and remote areas, in return for some distribution income. However, the direct contribution to their overall revenue is likely to remain limited.
Jio and Airtel have their own satellite broadband ventures – Bharti-backed Eutelsat OneWeb and Jio’s JV with SES (Orbit Connect India), which are ahead of Starlink in terms of securing the licences from the Department of Telecommunications (DoT) and approvals from IN-SPACe.
“We believe this agreement with Starlink will only help telcos position themselves as facilitators in bringing satellite connectivity to a wider customer base in India,” JM Financial said.
Against this backdrop, analysts suggested investors closely monitor revenue growth, subscriber additions, and the impact of 5G adoption on profitability.
“Reliance Industries presents better earnings momentum, going ahead, and the potential listing of the Jio telecom unit, amid Starlink deal, could be a major positive factor supporting the company,” said Vishnu Kant Upadhyay, AVP for Research & Advisory, Master Capital Services.
Starlink In India: Musk Accepts Government Conditions – What The Future Holds?
Elon Musk has been promised a ministry in Trump’s administration. This could give Starlink’s ambition of entering India momentum. Trump was backed by Elon in his presidential election campaign, including fundraising efforts. This could grant his satellite company added influence in regulatory matt
Starlink in India: The richest man in the world, Elon Musk, is bringing Starlink to India. Starlink, is a satellite broadband company owned by Musk. The company has been trying to enter the country for several months but was waiting to meet the conditions set by the government of India. In a recent update, the satellite broadband company is advancing its licensing application in India after agreeing to meet the government’s data localization and security demands. These conditions were a major obstacle for Starlink earlier, analysts and brokerage firms said.
According to reports, Elon Musk will take a position in the ministry of Trump’s administration as promised. This could give Starlink’s ambition of entering India momentum. Trump was backed by Elon in his presidential election campaign, including all fundraising efforts. This could grant his satellite company added influence in regulatory matters as it seeks to establish its Low Earth Orbit (LEO) satellite internet services in India.
Progress With Telecom Ministry For Starlink In India-
Reports suggest, Starlink has agreed ‘in principle’ complying with the security and data localization policies of the Government of India. This is a step forward towards obtaining a Global Mobile Personal Communication by Satellite Services (GMPCS) licence, which is essential for Starlink to provide satellite broadband in India.
Although, the company has not given a formal confirmation about the submission of its agreement.
This licence will allow Starlink to apply for trial spectrum at nominal fees. This is important for establishing the network in India. The Government of India requires all the satellite companies to store data within the country. Therefore, Musk-owned Starlink should demonstrate the process for securing data access by intelligence agencies if necessary.
“You have also looked at it from a security perspective… making sure that security concerns are addressed. When they do that, we will be more than happy to do so. There is a specific format, and you need to check all the boxes. When you checked all the boxes, you will get the licence. They are in the process of doing that,” Telecom Minister Jyotiraditya Scindia said.
In a report by Moneycontrol, the pricing of the satellite spectrum, Minister Scindia said the telecom regulator TRAI will clarify on the matter.
Trai’s Guidelines on Spectrum Allocation–
While Starlink is waiting for regulatory approval, the Telecom Regulatory Authority of India (TRAI) is working on consultations with stakeholders regarding spectrum allocation and pricing for satellite services. The guidelines were anticipated to be finalized by December 2024. This may open new opportunities for other satellite service providers to begin operations in India.
Elon Musk Claims Starlink is Blocked in South Africa as He’s Not Black
CNN of US reporting on the major deal said Elon Musk has secured a major win in India by signing two back-to-back deals to bring SpaceX’s Starlink satellite internet services to the country.
The country’s top telecoms provider Reliance Jio, owned by Indian billionaire Mukesh Ambani, said on Wednesday it had inked a deal with SpaceX.
“Jio will not only offer Starlink equipment in its retail outlets but will establish a mechanism to support customer service installation and activation,” it said in a statement.
A similar agreement with Bharti Airtel, India’s second-largest mobile operator was announced a day earlier.
Gwynne Shotwell, president of SpaceX, said the Musk-owned company looked forward to working with Airtel and Reliance Jio to advance India’s connectivity. Starlink must obtain regulatory approval before proceeding with the deals. Starlink’s surprising move to enter India through collaborations is “a prudent strategy,” according to Neil Shah, a vice president at Counterpoint Research, a market analysis firm.
“If you want to capture value in the attractive India market, you need to collaborate with local players rather than solely compete,” Shah said. “Both Jio-Airtel and Starlink need each other to drive this market.”
Satellite connectivity remains in its early stage in India, the world’s most populous nation, many of whose rural poor still live in remote or hard-to-connect places. Success in the market, where costs are estimated to be higher than for broadband, will depend on pricing, according to Counterpoint.
Airtel had previously signed a similar collaboration deal with France’s Eutelsat OneWeb, another satellite internet provider that, like Starlink, delivers global coverage through low Earth orbit constellations.
The announcement of the SpaceX deals follows Indian Prime Minister Narendra Modi’s meeting with Musk in Washington, D.C. last month where, according to an X post by Modi, they discussed space, technology and innovation.
Musk has been trying to break into the Indian market for years. His electric vehicle company Tesla has been planning to sell its cars in India since as early as 2017, but kept delaying its launch in the country as efforts to negotiate lower import duties with the local government stalled. Reuters reported earlier this month that Tesla had signed a lease for a showroom in Mumbai to sell imported cars.
Musk himself was due to visit India last year but cancelled at the last minute, citing his heavy obligations with Tesla. At the time, he was reportedly expected to announce a major investment of at least $2 billion for manufacturing facilities in the country, but the plan never materialized.
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