Musk v Ambani: Billionaires battle over India’s satellite internet
The battle for dominance in India’s satellite broadband market has intensified as two of the world’s wealthiest men, Elon Musk and Mukesh Ambani, prepare to face off. The competition between Musk’s Starlink and Ambani’s Reliance Jio comes in the wake of India’s decision to allocate satellite spectrum for broadband administratively rather than through an auction, a move that has sparked a heated debate.
Musk, whose Starlink service operates through low-Earth orbit (LEO) satellites, had previously opposed the auction model backed by Ambani, advocating for administrative allocation. His service aims to provide high-speed internet to remote and rural areas, where traditional infrastructure like DSL and cable is unavailable, helping to bridge the digital divide.
Ambani’s Reliance Jio, which dominates India’s telecom sector, has partnered with SES Astra, a Luxembourg-based satellite operator, using medium-Earth orbit (MEO) satellites. This system is seen as more cost-effective compared to Starlink’s LEO satellites, which require more units to cover a wider area.
India’s satellite broadband market, projected to reach two million subscribers by 2025, is highly competitive. With both Ambani and Musk eyeing a slice of the growing market, the pricing of spectrum is crucial. While satellite spectrum is typically not auctioned due to the high costs involved, Ambani and other major Indian telecom operators have pushed for auctions to ensure fairness.
Musk’s Starlink has already launched in over 100 countries, with 6,419 satellites in orbit and four million global subscribers. Regulatory hurdles have delayed his entry into India since 2021, but his participation could support Prime Minister Narendra Modi’s efforts to attract foreign investment and enhance the country’s pro-business image.
Meanwhile, Ambani and Sunil Mittal, chairman of Bharti Airtel, are pushing for auctions to level the playing field between satellite-based and traditional services. They argue that recent advances in satellite technology mean the lines between terrestrial and satellite networks have blurred, making it necessary to apply the same rules.
The Indian government, however, defends its decision to allocate spectrum administratively, citing international norms. The outcome of this battle could reshape India’s internet landscape, with nearly 40% of the country’s population still lacking internet access.
As satellite technology advances, both Musk and Ambani are betting on the vast potential of the Indian market, setting the stage for a fierce competition between the two billionaire titans.
