Jio Inks a Deal With SpaceX to Bring Starlink’s Internet Services to India

Mukesh Ambani-led Reliance Jio has partnered with Elon Musk’s SpaceX to bring Starlink’s broadband internet services in India. However, this is only possible if SpaceX receives approval from the centre to begin its operations in the country.

Under this arrangement, Jio will facilitate in making Starlink equipment available in retail stores and online platforms while also providing installation support.

Previously, the two companies clashed over spectrum allocation for satellite services, in which Jio insisted for an auction. However, the centre held on to Musk’s preference for administrative allocation, in line with global practices.

The announcement comes a day after Bharti Airtel signed a similar deal with SpaceX. Airtel has a notable presence in satellite communications through its OneWeb project. Notably, the two telecom giants are neck and neck in not only the traditional broadband services but also in the satellite internet space.

Gwynne Shotwell, President and Chief Operating Officer of SpaceX said, “We applaud Jio’s commitment to advancing India’s connectivity.”

“We are looking forward to working with Jio and receiving authorisation from the Government of India to provide more people, organisations and businesses with access to Starlink’s high-speed internet services.”

Why is Starlink necessary in India?

Though urban areas enjoy high-speed internet from giants like Jio and Airtel, rural and remote areas still struggle with poor or non-existent connectivity. Internet penetration rate stands at 47% in the country, leaving over 700 million people without stable access.

Starlink’s low Earth orbit (LEO) satellite technology can be a game changer in the technology space as it bypasses traditional infrastructure barriers by beaming the internet directly from space. The move proves beneficial for far-off villages in Himalayas, remote islands as well as isolated rural communities where laying optical fibre wires or installing cell towers seems merely impractical.

Mathew Oommen, Group CEO, Reliance Jio said, “Ensuring that every Indian, no matter where they live, has access to affordable and high-speed broadband remains Jio’s top priority. Our collaboration with SpaceX to bring Starlink to India strengthens our commitment and marks a transformative step toward seamless broadband connectivity for all.”

What are the challenges?

Starlink’s success in India depends on two factors:

Firstly, Starlink’s hardware costs between ₹25,000-₹35,000. Monthly subscription for availing this service stands between ₹5,000-₹7,000, which is significantly higher than India’s average broadband cost of ₹700-₹1,500 per month. Therefore SpaceX may need to either tie up with government-backed digital inclusion programmes or introduce an affordable pricing for Indian consumers.

Secondly, regulatory hurdles continue to remain a stumbling block. SpaceX must go through spectrum allocation processes, local data storage regulations, security clearances, and landing rights. Previously, the space technology giant has faced severe criticism in the country for accepting pre-bookings before securing authorised licences.

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As of 12: 48 pm, shares of Reliance Industries are trading at ₹1,247.50 up 0.016%.