The rivalry between two of the world's wealthiest individuals, Elon Musk and Mukesh Ambani, is heating up as they both set their sights on India's burgeoning satellite broadband market. A recent government decision to allocate satellite spectrum for broadband services administratively, rather than through auctions, has intensified this competition.
Satellite broadband offers internet connectivity across vast areas, making it a vital alternative for underserved rural regions where traditional services are lacking. While commercial satellite internet services have yet to launch in India, projections suggest that subscribers could reach two million by 2025, with Ambani's Reliance Jio currently leading the charge.
Reliance Jio has heavily invested in airwave auctions to secure its dominance and has formed a partnership with SES Astra, a key satellite provider. In contrast, Musk's Starlink employs low-Earth orbit (LEO) satellites, which promise faster speeds, whereas SES Astra uses medium-Earth orbit (MEO) satellites, generally seen as more cost-effective.
Despite the Indian telecommunications regulator not disclosing spectrum pricing, the government defends its administrative allocation method as aligning with international standards. Analysts suggest this approach may create a fairer competitive environment for Starlink's entry into the market. However, Reliance Jio argues for an auction-based system to ensure equitable competition.
Musk has indicated a willingness to collaborate with Ambani to facilitate Starlink's entry into India, emphasizing that the spectrum was previously classified for shared satellite use. Yet, Ambani's push for auctions could be a strategic move to outbid Musk and prevent Starlink from gaining a foothold.
With nearly 40% of India's population still lacking internet access, the stakes are high. Satellite broadband could significantly enhance connectivity, particularly in rural areas. However, analysts caution that Starlink may face challenges due to high operational costs and the need for more satellites to ensure adequate coverage.
The outcome of this clash between Musk and Ambani will shape the future of digital access in India, with critical implications for both companies and the consumers they aim to serve.