Starlink has finally made its way into India.
In an announcement on Tuesday, India’s second-largest telecom firm, Bharti Airtel, said it has signed an agreement with SpaceX to bring Starlink to the country. Under the partnership, Starlink will help Airtel expand its internet services in exchange for local expertise.
“Airtel and SpaceX will explore offering Starlink equipment in Airtel’s retail stores, Starlink services via Airtel to business customers, opportunities to connect communities, schools, and health centers, among many others, in even the most rural parts of India,” the press release read.
The deal is subject to SpaceX receiving approval from the Indian government and regulators.
Starlink has disrupted several global markets in recent years by undercutting incumbent telecom operators. A Rest of World analysis from January showed that in at least five of the 16 African countries where the service is available, a monthly Starlink subscription is cheaper than the leading fixed internet service provider.
Here is what you should know about Starlink’s long-awaited access to the Indian market:
What took it so long?
Starlink has been struggling to get regulatory approvals from the Indian government, which exerts strict control over its telecom industry. It has not succeeded so far mainly because of security concerns and resistance from the country’s domestic telecom operators.
In November last year, India’s telecom minister said the government would be happy to give Starlink a license if it meets India’s security and regulatory conditions. In early December, Starlink became the subject of controversy after law enforcement officials said they found Starlink equipment during a drug bust. Weeks later, reports indicated that smuggled Starlink devices were being used by militant groups in the state of Manipur, which has been ravaged by conflict since May 2023. Elon Musk responded on X, stating, “This is false. Starlink satellite beams are turned off over India.”
After the two incidents, the Indian government launched a “high-level probe.” One report noted that even though the government requested Starlink for information about the owners of the devices found during the drug bust, it refused, citing data privacy laws. Last month, local reports said Starlink had nearly crossed its first hurdle and was all set to get approval from India’s space regulator to start its services. The company will also require an operator’s license from India’s Department of Telecommunications and the allocation of spectrum.
What has Starlink done in India so far?
Starlink has had a tumultuous relationship with India. The company first registered its business in the country in November 2021, but later that month, the Indian government issued a statement warning people against signing up for the service as it had not yet obtained the requisite licenses.
Sanjay Bhargava, then head of Starlink India’s operations, said the company was planning to apply for a commercial license soon. He added that if the company could roll out its services by April 2022, it aimed to have 200,000 devices by the end of that year.
The plans came to naught.
In January 2022, Bhargava announced he was quitting Starlink India. Meanwhile, the Indian government asked Starlink — which had already received 5,000 preorders for its devices in the country — to refund customers since it had still not been granted licenses for its operations.
What changed in the run-up to the Starlink-Airtel deal?
Musk has faced resistance from Mukesh Ambani, India’s richest man and one of the most powerful in the country. Ambani’s company, Reliance, argued that the spectrum should be auctioned rather than allocated to private players to ensure fair competition. In response, Musk invoked the recommendations of the International Telecommunication Union, which advocates for the allocation of satellite spectrums.
Last month, Musk met with Indian Prime Minister Narendra Modi in Washington, where they discussed a wide range of subjects including space technology, mobility, and innovation.
At a press conference later, President Donald Trump said Musk probably met Modi because he “wants to do business in India.”
Over the last month, Musk’s Tesla has been ramping up efforts to hire staff in India. Trump, meanwhile, has railed against India’s high tariffs on automobile imports and threatened reciprocal action.
In this high-stakes game, defiant Ambani now seems to be on board. A day after Airtel announced a pact with Musk, Jio said it had also signed a similar agreement with Starlink, subject to SpaceX receiving its own regulatory approvals in India.
Who leads the Indian telecom sector right now?
As of December 2024, there were 1.06 billion active wireless subscribers in India. Jio, owned by Ambani, led the market with a 40.15% share, followed by Airtel at 33.45%.
The Telecom Regulatory Authority of India, a federal regulatory authority, advises the government on both terrestrial and satellite spectrum allocation. It also oversees licensing, compliance, and the testing of new technologies, and resolves disputes between private telecom operators.
TRAI has come under scrutiny in the past for being lenient toward Ambani’s mobile network, allowing it an unusually long network testing period, and enabling it to evade the strict competition regulations that applied to its rival companies, such as Vodafone and Airtel.
Indian telecom companies previously urged the government to apply the same pricing rules to satellite communication companies that regular telecom operators comply with. Local reports suggest Indian consumers will pay a monthly fee of $90 plus an annual subscription fee of $1,900, which includes the cost of a Starlink device.
Can Starlink start operating in India now?
Partnering with Airtel will not directly translate into any regulatory concessions for Starlink in India. The company must still comply with local regulations and obtain a license from India’s Department of Telecommunications before it can launch its satellite-based services.
Meanwhile, Airtel’s parent company has previously burnt its hands with a failed partnership with a U.S. company.In 2007, Bharti Enterprise entered into a joint venture with Walmart to open “several hundred” retail stores across India. What followed was five years of a troubled saga as the joint venture was accused of breaking Indian investment rules, mismanagement, and bad timing. In October 2013, the two companies finally parted ways. Walmart later entered the consumer retail space in India by acquiring homegrown Flipkart for $16 billion in the most expensive e-commerce acquisition to date.
