From competition to collaboration: A look at Airtel and Jio’s agreements and disagreements with Elon Musk’s Starlink

 From competition to collaboration: A look at Airtel and Jio’s agreements and disagreements with Elon Musk’s Starlink

India’s telecom giants Bharti Airtel and Reliance Jio have announced partnerships to launch Elon Musk’s Starlink services in India in a bid to provide better connectivity to their customers. Until last year, the Indian telecom giants opposed the American company’s entry into the country.

Bharti Airtel and Reliance Jio—India’s two largest telecom service providers—have inked a pact with Elon Musk’s SpaceX to offer Starlink’s broadband internet services to its customers in India. But what makes this partnership interesting is its history.

Both Mukesh Ambani-led Reliance Jio and Sunil Mittal’s Bharti Airtel initially opposed SpaceX’s entry into India. However, they have now partnered with a company they once viewed as a threat due to the lack of a ‘level playing field’.

Airtel, Jio making U-turns ?

Airtel and Jio’s announcements to partner with SpaceX to provide Starlink access to customers in India mark a U-turn, after the Indian telecom giants argued against the Elon Musk-led company’s entry in India.

Sunil Mittal-led Bharti Airtel was at loggerheads with Starlink last year over issues related to licence fees and spectrum pricing for satellite-based internet service providers.

At the time, telecom sector rivals Airtel and Jio opposed Starlink’s entry as all three prepared to commercially launch satellite broadband in India, following the government’s decision to allocate spectrum administratively and putting it in the new telecom bill.

At the India Mobile Congress (IMC) 2024, Sunil Mittal backed the stance of rival Mukesh Ambani’s Jio that satellite companies must pay license fees and buy airwaves for their telecom services, just like legacy telecom companies.

He said while he did not have anything against Starlink, all companies must be given a level playing field.

“They need to buy the spectrum as the telecom companies do, and need to pay the license as the telecom companies do, and also secure the networks of the telecom companies,” Mittal said at the conference.

Earlier, Jio also shared similar views, saying satellite firms should be treated at par with telecom companies.

Elon Musk’s view

Elon Musk had reacted to Jio’s comments, calling the demand made by the telecom operator for shunning sector regulator TRAI’s consultation paper on satellite broadband being allocated and not auctioned as “unprecedented”.

Following Mittal’s speech at the IMC in the presence of Prime Minister Narendra Modi, Musk had asked if it was “too much trouble” for Starlink to get permission to provide its services in India.

Starlink has been trying to seal its footprint in India since October 2022.

Starlink satellite connectivity in the US

What’s happening now ?

Both Airtel and Jio, which recently joined hands to oppose administrative spectrum to Starlink, have now announced partnerships with the American company in quick successions.

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.

Meanwhile, Bharti Airtel Managing Director and Vice Chairman Gopal Vittal said that working with SpaceX to offer Starlink services to Airtel customers in India is a significant milestone and further demonstrates the company’s commitment to next-generation satellite connectivity.

“The agreement will enable Airtel and SpaceX to further explore how Starlink can complement and expand Airtel’s offerings, and how Airtel’s expertise in the Indian market could complement SpaceX’s direct offerings to consumers and businesses,” Airtel said in a statement on Tuesday.

Both announcements came after Prime Minister Narendra Modi’s visit to the US and subsequent meeting with Elon Musk, the owner of Starlink operator SpaceX.

In a highly competitive and largely duopolised sector—dominated by Reliance Jio and Bharti Airtel—critics argue that forming partnerships might become the preferred strategy when direct competition is challenging.

Courtesy: Live Mint 

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