Musk vs Ambani: A celestial battle for India's broadband future
Subscribe to enjoy similar stories. Elon Musk and Mukesh Ambani, two of the world's richest persons, are circling over India's satellite broadband market—possibly the next frontier of the Indian telecom wars—and taking opposing positions. With less telecom infrastructure needed on ground, satellites are an alternative way to offer broadband services, and Musk has more satellites in orbit than anyone else.
The divide is clear, and it’s building up, administratively and politically. Musk’s Starlink is the outsider, the wannabe disruptor. It operates a constellation of over 6,650 low earth orbit (LEO) satellites, enabling wider coverage, faster internet speeds and lower latency than traditional geostationary satellites.
It could launch satellite broadband services as soon as it gets approvals from India. It has over 4 million customers across 100 countries. Meanwhile, Ambani’s Reliance Jio dominates the Indian broadband market, with about 51% share as of August.
It has partnered with Luxembourg-based SES for its medium earth orbit (MEO) satellites, and has suggested competitive pricing. At present, their jockeying centres around how India should allocate satellite spectrum for broadband. Musk advocates ‘administrative allocation’, which is pegged to plans and volumes.
Indian incumbents Reliance Jio and Airtel want auctions. While authorities have indicated the administrative allocation route, a final decision will be taken after India’s telecom regulator submits its recommendations in the coming weeks. Meanwhile, Musk’s proximity to incoming US president Donald Trump adds another dimension, in addition to technology and business models, for dominance of an industry of great strategic importance.
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