NEW DELHI: In a groundbreaking move, Mukesh Ambani’s Reliance Jio has partnered with Elon Musk’s SpaceX to bring Starlink satellite internet services to India. This collaboration comes after months of disputes over spectrum allocation, marking a strategic shift for both companies. Announced on March 12, 2025, the deal aims to bridge India’s digital divide, focusing on rural and underserved areas.
Reliance Jio, India’s largest telecom operator, will stock Starlink equipment in its retail outlets, creating a direct distribution channel for the satellite internet service. The partnership, however, is conditional upon government approval, which has faced delays due to national security concerns. Jio will also provide installation and activation support for Starlink devices, ensuring their seamless deployment.
Neil Shah, co-founder of Counterpoint Research, referred to the partnership as a “win-win” for all parties. Vivekanand Subbaraman, an analyst at Ambit Capital, remarked, “This is Indiaโs way of telling the US: โLetโs work together.โ It was very clear that Mr. Musk has a lot of clout in the American government and he is leveraging that.”
The collaboration follows a similar agreement between SpaceX and Bharti Airtel, India’s second-largest telecom player, announced a day earlier. Both deals aim to utilize Starlinkโs low Earth orbit satellite technology to deliver high-speed internet to remote regions. Analysts, however, believe that satellite internet will primarily cater to niche markets in India, given the widespread availability of low-cost 5G services already deployed across the country.
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India, despite having over 1 billion active mobile users, has a comparatively low fixed broadband subscription rate of 41 million. Axis Capital analysts highlighted that Starlinkโs premium pricing, coupled with the countryโs per capita GDP of less than $3,000, makes it โunlikely to become mainstream in India.โ
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Subbaraman noted, “Elon Musk could have built his own distribution and offices, but thatโs a hard thing to do and expensive. If you look at these partnerships, Elon Musk will be able to get visibility from day one. You need distribution muscle to reach consumers.”
The joint ventures may also address New Delhi‘s security concerns regarding Starlink’s operations in sensitive border areas shared with China and Pakistan. While satellite internet is expected to find its primary market in remote regions, its commercial promise in urban and suburban India appears limited.
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The partnerships come weeks after Indian Prime Minister Narendra Modiโs meeting with Musk in Washington, where discussions covered space, mobility, and innovation. In October 2024, the Indian government supported Muskโs push for administratively allocated airwaves at a pre-decided price, enabling low-latency satellite services. Jio and Airtel had earlier expressed concerns that this decision could lower entry costs for new players and impact their subscriber base.
Gwynne Shotwell, President of SpaceX, expressed enthusiasm about the collaboration, stating, “We look forward to working with Jio and receiving authorization from the Government of India.” Reliance, meanwhile, seeks to enhance its broadband portfolio, including JioFiber and JioAirFiber, by integrating Starlink’s capabilities.
India’s satellite service sector is projected to grow at an annual rate of 36% to reach $1.9 billion by 2030. The Jio-SpaceX alliance represents a significant step toward innovative infrastructure and rural empowerment, setting the stage for transformative changes in India’s connectivity landscape.
