Will Musk's Starlink Be Able To Enter India's Competitive Telecom Sector?

Elon Musk aims to bring Internet access closer to users with Starlink's satellite broadband. So, get ready to surf the web at warp speed, no matter where you are on the planet.

According to Wikipedia, Starlink, run by the American aerospace company SpaceX, provides satellite Internet access coverage to more than 56 nations. After 2023, it plans to provide mobile phone service everywhere globally. In December 2022, SpaceX said they would hit 1 million subscribers; and by May 2023, 1.5 million subscribers.

Starlink is setting its sights on an India launch and is lobbying not to auction the spectrum but just assign licenses in line with a global trend, saying it is a resource that companies should share. An auction may impose geographical restrictions that will raise operational costs, it said in company letters made public by the Indian government.

Following a meeting with Indian Prime Minister Narendra Modi in the U.S., Musk said he was keen to launch Starlink in India, which "can be incredibly helpful" in remote villages without internet or lacking high-speed services.

TechDogs-"Image of Starlink and Elon Musk."

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While Elon Musk's Starlink is ready to beam satellite broadband in the Indian sub-continent, a Reuters report highlighted they will have to watch out for the Ambani's Reliance telecom.

It will lead to an epic showdown of connectivity!

The Reuters reportalso said that in a public filing to the government, Reliance argued that an auction is necessary because foreign satellite service providers may offer voice and data services and compete with traditional telecom firms.

According to Reliance, opening the floodgates to established foreign businesses like Starlink without an auction will allow them to achieve "runaway success" similar to Amazon, which will be detrimental to Indian firms and lead to an unlevel playing field. When reached for comment, Reliance directed Reuters to public filings made by both company and Starlink.

Ambani's Reliance Jio already has 439 million cellular users, 8 million wired internet connections, a 25 percent market share; making it the market leader. Keeping foreign competition at bay in the satellite broadband sector will be key for its future outlook.

Tim Farrar, an analyst at US-based consultancy TMF Associates, said it would set a "bad precedent" for Starlink to pay a substantial auction amount in India when it is obtaining low-cost licenses in many other countries.

"I'd expect Starlink to make high-profile free offers elsewhere in order to try and demonstrate what India could be missing out on," he said.

TechDogs-"Image of Reliance and Mukesh Ambani."

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Who will reign supreme in India's connectivity sector? Will Musk with his cosmic Starlink take on the formidable Reliance? Let us know your thoughts in the comments section below!

First published on Fri, Jun 23, 2023

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India Connectivity Universe Throne Elon Musk Starlink Ambani Reliance Telecom Supremacy Battle Clash

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