A high-stakes competition is brewing between two of the world’s wealthiest individuals, Elon Musk and Mukesh Ambani, as they prepare to vie for a share of India’s burgeoning satellite internet market. The rivalry has intensified following the Indian government’s recent decision to allocate satellite spectrum for broadband through administrative methods rather than auctions.
The move is significant, as Musk’s Starlink and Ambani’s Reliance Jio battle for dominance in a market projected to reach two million satellite internet subscribers by 2025, according to the credit rating agency ICRA. Starlink, which currently operates 6,419 satellites and serves four million customers across 100 countries, is set to compete against Reliance Jio’s partnership with Luxembourg-based satellite operator SES Astra.
Jio, which has invested heavily in airwave auctions to dominate India’s telecom sector, uses medium-Earth orbit (MEO) satellites. In contrast, Starlink relies on low-Earth orbit (LEO) satellites positioned between 160 and 1,000 km from Earth’s surface, offering faster service but at higher costs.
Although Musk has aimed to enter the Indian market since 2021, regulatory hurdles delayed Starlink’s launch. However, India’s decision to bypass the auction route may open the door for Starlink’s long-awaited entry. India’s telecom regulator has yet to announce spectrum pricing, and commercial services are still pending.
For Ambani’s Reliance, the stakes are high. Having spent billions on airwave auctions to secure market dominance, the company has urged India’s telecom regulator to reconsider its administrative pricing decision. Reliance argues that auctions are essential for fair competition, given the lack of clear legal frameworks for satellite-based services in India. The firm maintains that advancements in satellite technology have blurred the lines between satellite and terrestrial networks.
Musk, meanwhile, has been vocal about his disagreement with auctions, arguing that the spectrum is designated by the International Telecommunication Union (ITU) as shared spectrum for satellites. Responding to reports of Ambani’s lobbying efforts, Musk remarked on X (formerly Twitter), “I will call [Mr Ambani] and ask if it would not be too much trouble to allow Starlink to compete to provide internet services to the people of India.”
The conflict is not just about the two billionaires; other telecom giants like Sunil Mittal’s Bharti Airtel have also voiced support for auctions. Airtel, India’s second-largest wireless operator, holds 80% of the country’s telecom market alongside Jio. Mittal has asserted that companies targeting urban, high-end customers should “take telecom licenses and buy spectrum like everyone else,” suggesting a defensive strategy aimed at raising barriers for international players like Starlink.
Analysts say the resistance from major players reflects a broader fear among India’s telecom companies, which currently dominate with terrestrial networks. They see advancing satellite technology as a looming threat to their market share, particularly in a nation where nearly 40% of the 1.4 billion population lacks internet access, especially in rural areas.
For Musk’s Starlink, India’s market represents an immense opportunity to bridge the digital divide and provide internet access to remote regions. Technology analysts believe that if Starlink can price its services competitively, it could gain traction, particularly in areas underserved by traditional networks. However, Starlink’s current costs are significantly higher than those of major Indian providers, making government subsidies crucial for market success.
The competition could also lead to a price war, with Musk’s deep pockets enabling Starlink to offer incentives, such as free trials in select areas, to gain market foothold—similar to its strategy in Kenya and South Africa.
Despite the challenges, experts note that businesses are unlikely to switch entirely to satellite internet unless there are no terrestrial options available. Gareth Owen, a technology analyst at Counterpoint Research, says that terrestrial networks will remain more cost-effective except in sparsely populated regions.
While Musk’s Starlink may have a first-mover advantage, Owen cautions that “satellite markets are notoriously slow to develop.” Nevertheless, the competition between two of the world’s richest men promises to reshape the future of India’s digital landscape as both strive to bring the “internet of space” to millions of Indians.
The battle between Musk and Ambani has only just begun, and with both billionaires vying for control of the vast and underserved Indian market, the stakes couldn’t be higher.