The competition between two of the world’s wealthiest individuals, Elon Musk and Mukesh Ambani, is heating up as they prepare to enter India’s satellite broadband market. F
ollowing the Indian government’s recent announcement to allocate satellite spectrum for broadband administratively rather than through auction, the stage is set for a fierce showdown.
Musk has criticized the auction model championed by Ambani, the chairman of Reliance Jio, who has already established a significant foothold in the telecom sector.
With satellite broadband, users can access the internet from remote areas where traditional services like DSL or cable are unavailable, making it a crucial tool in bridging the digital divide.
Currently, India’s telecom regulator has not yet disclosed pricing for the satellite spectrum, and commercial services are yet to launch.
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However, a credit rating agency, ICRA, projects that satellite internet subscribers in India could reach two million by 2025.
Ambani’s Reliance Jio is leading the charge, having invested heavily in airwave auctions and forming a partnership with Luxembourg-based SES Astra, which operates medium-Earth orbit (MEO) satellites.
In contrast, Musk’s Starlink utilizes low-Earth orbit (LEO) satellites, which can provide faster service.
Starlink already has a significant presence, with over 6,400 satellites in orbit and four million subscribers across 100 countries, and Musk has been aiming to launch in India since 2021, facing regulatory delays.
India’s government defends its administrative allocation decision, claiming it aligns with international norms.
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Analysts note that auctioning the spectrum could potentially disadvantage new entrants like Starlink, while Ambani’s firm argues that an auction is necessary to ensure fair competition.
This battle not only represents a contest of business titans but also has broader implications for India’s internet access.
Nearly 40% of India’s 1.4 billion people remain offline, particularly in rural areas, indicating a vast market opportunity.
If priced competitively, satellite broadband could help close this gap and support the country’s digital ambitions.
