Jio & Airtel’s Starlink Partnership

On Tuesday, Telecom operators Bharti Airtel said they had signed an agreement with Elon Musk’s SpaceX to bring Starlink’s satellite internet service to India. Soon after, Jio announced on Wednesday that it had made a pact with Elon Musk’s SpaceX to offer Starlink’s broadband internet services to its customers in India, which has been trying to seal its footprint in India since October 2022. But what makes this partnership engaging is its history. Both have partnered with a company they once considered a threat due to lacking a ‘level playing field’.

Jio & Airtel’s U-Turn: Join Hands with Starlink

Mukesh Ambani-led Reliance Jio and Sunil Mittal’s Bharti Airtel initially opposed SpaceX’s entry into India. Airtel and Jio’s announcements to partner with SpaceX to provide Starlink access to Indian customers mark a U-turn after the Indian telecom giants debated against the Elon Musk-led company’s entry in India.

Mittal Supports Jio on Satellite Spectrum Fees

Sunil Mittal-led Bharti Airtel was at loggerheads with Starlink last year over licence fees and range pricing issues for satellite-based internet service providers. At the time, telecom sector opponents Airtel and Jio opposed Starlink’s entry as all three prepared to commercially establish satellite broadband in India, following the government’s decision to assign spectrum administratively and put it in the new telecom bill.

At the India Mobile Congress (IMC) 2024, Sunil Mittal backed the viewpoint of rival Mukesh Ambani’s Jio that satellite companies must pay license fees and purchase airwaves for their telecom services, just like legacy telecom companies. He further said that while he had nothing against Starlink, all companies must be given a level playing field. Earlier, Jio also shared similar views, saying satellite firms should be treated at par with telecom companies.

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How Jio and Airtel’s SpaceX Deals Could Change India’s Telecom Landscape

The pact between Jio and SpaceX enables the companies to explore how Starlink can extend Jio’s offerings and how Jio can complement SpaceX’s direct offerings to consumers and businesses. Through this agreement, the parties will leverage Jio’s position as the world’s largest mobile operator in terms of data traffic and Starlink’s position as the world’s leading low Earth orbit satellite constellation operator to deliver reliable broadband services across the country, including the most rural and remote regions.

Both announcements came after Prime Minister Narendra Modi visited the US and met with Elon Musk, the owner of Starlink operator SpaceX. In a highly competitive and largely duo-led sector dominated by Reliance Jio and Bharti Airtel, critics argue that starting partnerships is preferred when direct competition is problematic. 

What Makes Starlink Different from Traditional Internet?

Starlink is a satellite constellation using a low Earth orbit (LEO) to deliver broadband internet competent supporting streaming, video calls, online gaming, and more. It is a constellation of thousands of satellites which orbit the planet much nearer to Earth, at about 550km, and cover the whole world. As Starlink satellites are in a low orbit, latency is significantly lower, around 25 ms vs 600+ ms.

For India, the potential benefits are significant. Presently, internet penetration is around 47%, leaving over 700 million people without reliable access. Rural connectivity remains challenging due to the high prices and logistical problems of spreading fiber cables and constructing mobile towers. Still, Starlink’s satellite internet can provide speeds of up to 220 Mbps.

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Is Starlink a Threat to India’s Broadband Giants?

Starlink’s entry into the Indian market will shake up the telecom sector. Reliance Jio, which revolutionised mobile internet with aggressive pricing in 2016, may face new competition. While Jio and Airtel are working with SpaceX, Starlink’s ability to sidestep traditional infrastructure could challenge their current broadband models. Impact Starlink can have on Indian internet service providers:

• India’s fixed broadband costs range between ₹600-1,500 per month, and Starlink’s higher pricing may initially limit its reach. 

• The presence of a satellite-based rival could push domestic internet service providers to improve service quality and rethink pricing strategies. 

• But, as technology advances and costs are reduced, satellite internet could become more competitive.

Starlink’s Potential to Transform Education, Healthcare, and More

Starlink can offer services in areas with inadequate network coverage but at a costlier price. Remote villages, Himalayan regions, and island territories could gain reliable connectivity for the first time, enabling telemedicine, online education, and better emergency communication services. 

Despite challenges like affordability and regulatory approvals, Starlink’s collaboration with Airtel and Jio marks a step toward more inclusive digital connectivity. Whether this move benefits millions of Indians in the long run depends on how effectively the technology is implemented and whether pricing strategies align with the needs of Indian consumers.