Clash of Titans: Musk and Ambani Face Off Over India's Satellite Internet Market

24.10.2024

The competition between two of the world’s wealthiest individuals, Elon Musk and Mukesh Ambani, is intensifying as they prepare to battle for dominance in India’s satellite broadband market. This contest has gained momentum after the Indian government announced that satellite spectrum for broadband would be allocated administratively, rather than through auction— a move that Musk supports, but Ambani opposes. Musk has previously criticized the auction model, which Ambani and others favor for ensuring fair competition in India’s rapidly expanding digital landscape.

Satellite broadband offers reliable internet access across vast areas, particularly in remote or rural regions where traditional connections like DSL or cable are unavailable. This technology holds the promise of bridging India’s digital divide, which remains significant. Around 40% of India’s 1.4 billion population still lacks internet access, primarily in rural areas. Satellite internet, therefore, represents an opportunity to bring more people online and help close this gap, a crucial step for India’s development.

Ambani’s Reliance Jio, which has already invested heavily to dominate India’s telecom sector, has partnered with Luxembourg-based SES Astra to bring satellite services to India. Jio’s partnership leverages medium-Earth orbit (MEO) satellites, which offer a cost-effective solution compared to Musk’s Starlink, which operates with low-Earth orbit (LEO) satellites for faster internet speeds. Starlink, with over 6,400 satellites in orbit, has been delayed in entering the Indian market due to regulatory issues.

Musk, however, is determined to bring Starlink to India, positioning the company as an ally to Prime Minister Narendra Modi’s push to attract foreign investment and enhance India’s pro-business image. Musk’s entry could not only challenge Ambani’s dominance but also help provide connectivity in underserved regions. Regulatory decisions about spectrum allocation will play a critical role in determining whether Starlink gains a foothold in the Indian market or faces more obstacles from established local players like Reliance Jio.

With nearly two million satellite internet subscribers expected by 2025, the competition between Musk and Ambani represents a high-stakes battle for the future of India’s internet infrastructure. While Starlink has a first-mover advantage globally, the Indian market’s unique pricing pressures—where mobile data is among the cheapest in the world—could challenge its ability to compete unless it adjusts its pricing model or secures government support.