India, the world’s second-largest internet market, is poised for a major shake-up with the entry of Elon Musk-led Starlink. Two of the country’s biggest telecom operators, Reliance Jio and Bharti Airtel, have signed separate agreements with SpaceX to bring Starlink’s satellite internet services to India. In a surprising turn of events, these long-time rivals—who previously opposed Starlink’s entry—have now joined forces to welcome the US-based company.
This development comes at a crucial time when Indian and US officials are negotiating a trade deal, even as President Donald Trump threatens retaliatory tariffs on April 2. Despite intense lobbying against Starlink, the telecom policy did not favour Airtel and Jio, leading to their unexpected collaboration with the satellite internet provider.
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Once SpaceX secures regulatory approval, Starlink’s presence will significantly expand satellite internet coverage across India, providing access to millions of unconnected users. Industry analysts estimate that this partnership will give Musk’s company access to nearly 70% of India’s mobile user base. Additionally, India offers economies of scale, which is crucial for a high-cost venture like satellite broadband.
A report by Ericsson suggests that India is set to surpass the US—currently Starlink’s largest market with six million Fixed Wireless Access (FWA) customers. With an existing subscriber base of 4.6 million globally as of 2024, the Elon Musk company stands to gain a significant foothold in India’s booming digital economy.
Satellite broadband: A game-changer?
India is home to over 1.4 billion people, yet more than 670 million still lack internet access, according to a 2024 GSMA report. The vast geography makes wired broadband expansion challenging, and setting up 4G or 5G towers in remote regions is often economically unfeasible.
The arrival of Starlink is expected to shake up the telecom landscape and bring internet access to previously unconnected areas. Unlike traditional broadband, satellite internet provides coverage anywhere within a satellite’s footprint, making it an ideal solution for rural and remote regions. Starlink already has 7,000 operational satellites and aims to build a mega-constellation of 42,000, giving it a near-monopoly in the segment due to its ability to launch satellites at significantly lower costs via SpaceX rockets.
The effectiveness of Starlink was demonstrated when it swiftly connected Ukrainian troops at the start of the war three years ago, showcasing its capability to provide reliable internet access in critical situations.
What’s in it for Indian consumers
For Indian consumers, long concerned about the telecom duopoly of Bharti Airtel and Reliance Jio, the entry of a strong foreign competitor could drive down prices and improve service quality. While India already boasts the world’s lowest mobile data rates, how Starlink prices its services will be a key factor. Currently, satellite broadband plans cost around $150 per month, compared to India’s mobile data rates of just $2 per month.
A partnership with Jio and Airtel could help reduce prices to approximately ₹3,000 per month, making it more accessible. However, pricing competitiveness against Jio’s FWA services and Airtel’s satellite broadband offerings will remain a challenge.
Beyond cost considerations, Starlink has the potential to bridge India’s deep digital divide. Millions of students in rural India struggle with online learning due to a lack of internet access, while many elderly citizens remain disconnected from essential digital services. Traditional telecom operators may eventually expand into satellite broadband, but for the millions without access, waiting years or decades is not a viable option. Starlink offers an immediate solution.
For rural India to fully benefit, heavy government subsidies or free community connections will be necessary. The core benefit of satellite internet is not just cheaper broadband for existing users but expanding internet access to those who currently have none.
What does Starlink offer to telcos?
Starlink has been eyeing the Indian market since 2021, but regulatory roadblocks have delayed its entry. In a strategic shift, Indian telecom operators have decided to collaborate with SpaceX, recognising that cooperation is preferable to competition, especially amid ongoing trade tensions between India and the US.
Jio has announced plans to sell Starlink equipment through its retail outlets and online stores, along with providing installation support. Airtel is exploring a similar model while simultaneously expanding its satellite internet services through its existing partnership with Eutelsat OneWeb.
Both Jio and Airtel have over three million FWA subscribers across 1,700 Indian cities and towns. They plan to integrate Starlink into their service offerings—Jio with JioAirFiber and JioFiber, and Airtel focusing on the foreign enterprise’s solutions for business connectivity. Additionally, both companies will use their extensive distribution networks to ensure its services reach customers efficiently.
Regulating satellite internet
One key reason to allow a foreign satellite service provider like Starlink is to drive competitive pricing in the market. The Telecom Regulatory Authority of India (TRAI) is expected to release recommendations on satellite spectrum pricing soon, paving the way for commercial services. A price cap will be crucial to ensure that Indians can fully benefit from the new competition.
Regulating foreign satellite operators presents a complex challenge. The Indian government must implement safeguards against potential risks such as data interception and unauthorised access. Enforcing data localisation for sensitive information and mandating technology transfers to Indian companies will also be critical.
The arrival of Starlink could also pave the way for Amazon’s Project Kuiper, preventing a scenario where one American company dominates the market. If executed well, this development could be a win-win for all stakeholders—including the government, industry, consumers, and satellite communication providers.
SpaceX’s entry into India marks a significant milestone in the country’s digital transformation journey. While regulatory challenges and competition persist, the potential benefits—widespread connectivity, economic growth, and technological advancement—position this as a game-changing moment for India’s internet landscape. If managed well, the arrival of satellite broadband could bring the country closer to bridging its digital divide, ensuring that millions more can participate in the global digital economy.