The Evolution of Telecom: Jio and Airtel’s Surprising Collaboration with Starlink

In a groundbreaking move, Jio Platforms has announced a strategic collaboration with Elon Musk’s SpaceX to introduce Starlink’s satellite internet services in India. However, there’s a crucial hurdle—SpaceX must first secure regulatory approvals from the Indian government before it can officially launch operations.

This partnership marks a significant shift in the telecom landscape, especially considering Starlink’s long-standing struggle to enter the Indian market since October 2022.

Interestingly, Starlink initially faced resistance from major telecom players Jio and Airtel, both of whom were against its entry. The telecom giants were gearing up to introduce satellite broadband services after the government decided to allocate spectrum administratively, a move aligned with global standards. While Starlink supported this approach, Jio pushed for an auction-based model, creating friction in the process.

At the India Mobile Congress (IMC) 2024, Bharti Airtel’s chairman, Sunil Mittal, underscored the importance of a level playing field, arguing that satellite companies should be subject to the same regulations as telecom operators, including purchasing spectrum and paying license fees. Jio echoed Mittal’s sentiment, advocating for satellite service providers to be treated equally to traditional telecom firms.

However, Elon Musk pushed back against this stance, calling the demand for an auction-based model "unprecedented." Following Mittal’s remarks at IMC, Musk voiced his frustration, questioning whether obtaining regulatory approval for Starlink’s operations in India was proving to be "too much trouble."

After initial resistance, Jio and Airtel have both entered partnerships with Starlink, intensifying competition in India’s broadband and satellite internet sectors. The Jio-SpaceX collaboration aims to expand high-speed connectivity across the country, especially in rural areas, leveraging Jio’s vast mobile network and Starlink’s satellite expertise.

Meanwhile, Bharti Airtel's deal with SpaceX is seen as a significant step toward next-generation satellite connectivity, with its Managing Director, Gopal Vittal, emphasizing its potential to enhance Airtel’s offerings in India. These developments mark a new era for satellite-based broadband services in the country.

"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.