Jio Platforms Ltd made the announcement on March 12 that it has entered into an agreement with Elon Musk's SpaceX to bring Starlink's satellite internet services to India. The move comes a day after a similar association by competitor Bharti Airtel.
The partnership is subject to SpaceX obtaining regulatory clearance to provide Starlink services in India. Jio and SpaceX, as per the deal, would look to incorporate Starlink's technology to boost Jio's services and increase SpaceX's direct services to consumers and businesses as well.
Jio would offer Starlink solutions through retail stores and websites, providing equipment and customer service support for installation and activation.
By uniting Jio's status as the world's largest mobile data operator with Starlink's large low Earth orbit (LEO) satellite constellation, the alliance will offer high-speed broadband throughout India, including the nation's most rural regions.
"Making sure that all Indians, regardless of their location, have access to affordable and fast broadband is Jio's highest priority. Our partnership with SpaceX reinforces this commitment and represents a revolutionary move towards frictionless connectivity for all," said Mathew Oommen, Reliance Jio Group CEO.
This collaboration is likely to supplement Jio's current internet offerings—JioAirFiber and JioFiber—by providing connectivity to hard-to-reach areas. Jio and SpaceX are also considering additional collaborations to further develop India's digital landscape.
"We welcome Jio's vision to enhance India's connectivity. We are excited to collaborate with Jio and obtain approval from the Indian government to extend Starlink's high-speed internet services," said Gwynne Shotwell, President and COO of SpaceX.
Regulatory Hurdles & Market Competition
Notwithstanding the ambitious collaboration, regulatory clearances are a major hurdle. India's space regulator, IN-SPACe, and the Department of Telecommunications (DoT) have not given Starlink the necessary clearances.
SpaceX reportedly agreed to adhere to India's data localization and security needs in November 2023, previously the biggest hurdle. Competitors like Eutelsat OneWeb and Jio's joint venture with SES have already obtained GMPCS licenses and IN-SPACe clearances.
Currently, Starlink operates over 6,000 LEO satellites, while Amazon’s Kuiper project plans to deploy 3,236 satellites starting in early 2025.
The government of India has indicated that satellite communication space will be distributed through an administrative mechanism with a fee regime. But telecom giants such as Jio and Bharti Airtel are recommending the auction-based mechanism of distribution. The Telecom Regulatory Authority of India (TRAI) is likely to announce price details for the satellite space in the near future.
Since India's space economy is expected to reach $44 billion by 2033—accounting for 8% of the world market share—the battle for satellite internet services is going to heat up.
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