Elon Musk vs. Mukesh Ambani: Billionaires battle for satellite spectrum control in India

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  • Post last modified:October 22, 2024
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Starlink satellites in space. Image credit: SpaceX

Elon Musk and Mukesh Ambani are two giants in the tech and business worlds, and their rivalry is increasingly shaping the future of internet access in India. As Musk’s Starlink aims to provide global satellite internet coverage, Ambani’s Jio focuses on expanding affordable broadband services nationwide.

This competition is not just about market share; it represents a battle for influence over India’s digital landscape. The competition between Musk’s Starlink and India’s telecom giants, Reliance Jio and Airtel, is heating up as the Indian government has allocated satellite spectrum administratively rather than through auctions.

This shift could ease Starlink’s entry into the market, which has faced regulatory challenges since its initial pre-orders in 2021. Musk has expressed optimism about this development, emphasizing that it aligns with international practices.

In a recent decision, Indian Telecom Minister Jyotiraditya Scindia chose to allocate the satellite spectrum administratively rather than auctioning it. Later, tech billionaire Elon Musk expressed gratitude to the Telecom Minister for not siding with the Indian tycoons. However, following this decision from the TRAI, Reliance Jio also made a strategic move to maintain its market share.

Reliance Jio has officially filed a request to the Telecom Regulatory Authority of India (TRAI) to update its satellite communication guidelines. In a letter to TRAI, Jio’s Chairman, AK Lahoti, also pointed out the need for a level playing field for satellite and terrestrial services reported by DNA India.

This corresponds with Musk’s position on making spectrum resources available to all. The pricing model set by TRAI will be crucial in determining how competitively Starlink can operate in India. Starlink could revolutionize internet access in underserved regions of India, potentially bridging the digital divide. However, its success will depend on navigating regulatory hurdles, competitive pricing strategies, and addressing security concerns effectively.

 

Starlink vs Jio

Service ProviderStarlinkJio
Type of ServiceSatellite InternetFiber/4G/5G Internet
Launch Year20192016
Coverage AreaGlobal (especially rural areas)India (urban and rural areas)
Average Speed100-200 Mbps30-50 Mbps (4G), up to 1 Gbps (5G, Fiber)
Pricing$99/month (approximately ₹7,400)₹399-₹1,499/month
Official WebsiteClickClick

The comparison table shows that the Starlink satellites are much superior considering the global coverage and the internet speed. However, this superior internet coverage comes with a far superior price. The price difference is considerable.

The Starlink internet connection can cost anywhere from $50 to $100, which is from Rs 4200 to Rs 7400, whereas Reliance JioFiber starts at Rs 399 (excluding taxes) per month, according to an article by Business Today. This price gap will be a challenge for Starlink to get customers in Indian rural areas.

However according to Wikipedia, as of September 2024, there are over 7,000 active Starlink satellites in the Lower Earth Orbit (LEO). Due to this established satellite network, Starlink can reduce internet costs. Only time will tell the future of Starlink and Jio in India.

Nihal Sayyad

Nihal Sayyad is a space enthusiast, Digital journalist and Science Communicator. He loves writing about the universe and cosmos. He aims to raise awareness about fascinating subjects beyond our world and bring interesting and reliable content to his audience.

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