Starlink: Telecom giants team up after past opposition as minister deletes tweet

Telecom operators Reliance Jio and Bharti Airtel, once vocal opponents of SpaceX’s Starlink satellite internet service, have made a dramatic U-turn by partnering with Elon Musk’s company to bring the service to India. The unexpected alliance comes amid confusion over IT minister Ashwini Vaishnaw’s swiftly deleted tweet welcoming Starlink’s entry, raising questions about the government’s stance on satellite broadband.

The collaboration announcement came just a day after Ashwini Vaishnaw tweeted a warm welcome to Starlink, stating, "Starlink, welcome to India!" However, the tweet was promptly deleted in a puzzling move, leaving industry insiders speculating about the reasons behind the abrupt reversal.

In the same tweet, Vaishnaw, who also serves as the railways minister, mentioned that Starlink would be useful for remote railway projects, hinting at the government's growing interest in leveraging satellite technology for infrastructural development.

Until recently, Airtel and Jio were vocal critics of SpaceX's plans to introduce Starlink services in India. Both companies had raised objections to the lack of a "level playing field," demanding that satellite internet providers like Starlink pay the same license fees and purchase airwaves as traditional telecom operators.

Sunil Mittal, chairman of Bharti Enterprises, had publicly stated during the India Mobile Congress (IMC) 2024 that satellite companies should not be given preferential treatment, insisting they pay license fees and buy spectrum like legacy telecom firms.

Reliance Jio also expressed similar concerns, especially after the government’s decision to allocate spectrum for satellite broadband through administrative means rather than auctioning it.

In fact, Jio had actively lobbied against the consultation paper issued by the Telecom Regulatory Authority of India (TRAI) that proposed non-auctioned allocation of satellite spectrum, a move Elon Musk labeled "unprecedented."

Industry experts suggest that the partnership is a pragmatic decision driven by the rapidly evolving telecom landscape. Despite their initial resistance, both Airtel and Jio recognised the strategic advantage of collaborating with SpaceX to access satellite broadband technology, especially in a market increasingly focused on connectivity in remote and underserved areas.

Additionally, the government's gradual shift toward approving satellite-based connectivity, coupled with changing global dynamics—such as Musk's growing influence through his association with the Trump administration—might have encouraged the telecom giants to reconsider their stance.

Starlink’s unique selling point lies in its ability to provide high-speed internet without relying on terrestrial infrastructure, making it ideal for rural and hard-to-reach locations. SpaceX’s ambitious plan to deploy 42,000 satellites in low Earth orbit has already seen rapid expansion, with more than 4.6 million users worldwide by the end of 2024.

However, affordability remains a concern, as the basic package costs around $120 per month, with an additional $349 for the equipment. While this pricing might be steep for Indian consumers, the promise of uninterrupted connectivity even in adverse conditions has attracted considerable interest from various sectors, including government projects and corporate customers.

Despite the hype, SpaceX still awaits formal government approval to roll out Starlink in India. Historically, the country has been cautious about satellite-based connectivity, especially regarding the use of satellite phones.

Nevertheless, with both Airtel and Jio now on board, regulatory clearances could be expedited, as the partnership aligns with the government’s goal of digital inclusion and enhanced connectivity.

The unexpected alliance between Airtel, Jio, and SpaceX marks a new chapter in India’s telecom sector. It signals a strategic pivot from adversarial competition to collaborative innovation, driven by the practical need to extend internet access to every corner of the country.

While the partnership might raise eyebrows, it also offers a glimpse into a future where satellite connectivity becomes an integral part of India's digital ecosystem.