Musk and Ambani Partner in Surprise Starlink-India Internet Deal

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In a surprising turn, Elon Musk’s SpaceX and Mukesh Ambani’s Reliance Jio have partnered to bring Starlink’s satellite internet services to India, despite previous clashes over spectrum allocation. Under the agreement, Reliance Jio, India’s largest telecom operator, will stock and distribute Starlink equipment through its extensive retail network.

The deal marks a strategic shift for both billionaires, who had previously been locked in a dispute over how spectrum should be allocated for satellite internet services. While Ambani initially pushed for an auction model, the Indian government ultimately backed Musk’s preference for administrative allocation, aligning with global norms.

This agreement follows a similar partnership between Starlink and India’s second-largest telecom firm, Bharti Airtel, announced just a day prior. Both deals, however, remain subject to regulatory approval before Starlink can begin commercial operations in the country.

Strategic Implications and Market Growth

Analysts view this as a “win-win” move, as it allows Starlink a low-cost entry model into the Indian market while enabling Reliance Jio to expand its broadband offerings in underserved regions. The deal is expected to help accelerate India’s satellite internet sector, which is projected to grow 36% annually to $1.9 billion by 2030, according to Deloitte.

Jio Platforms, the digital arm of Reliance, will not only handle installation and activation support for Starlink services but is also exploring additional collaboration opportunities with SpaceX.

Musk’s Expanding Interests in India

Musk’s growing engagement with India extends beyond Starlink. Tesla recently secured a deal to open its first showroom in the country, though the company continues to struggle with import tariffs exceeding 100%, which Musk has criticized as among the highest globally.

Starlink has been waiting since 2022 for regulatory clearance to operate in India, facing delays due to national security concerns. Notably, Indian authorities have seized Starlink devices in conflict and smuggling-related incidents, leading Musk to confirm that Starlink services remain inactive in the country.

With Reliance Jio and Airtel now on board, the Starlink-Jio deal could improve Musk’s prospects of securing government approvals, as the partnership aligns Starlink with India’s leading telecom operator.

Spain Moves to Fine Companies for Unlabelled AI-Generated Content

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Spain’s government has approved a new bill imposing hefty fines on companies that fail to label AI-generated content properly. The measure, aimed at combating misinformation and the spread of deepfakes, aligns with the European Union’s AI Act, which enforces strict transparency rules for high-risk AI applications.

Digital Transformation Minister Oscar Lopez emphasized the dual nature of AI, describing it as both a powerful tool for improving lives and a potential threat to democracy through disinformation. Spain is among the first EU nations to implement these regulations, setting a more rigid standard compared to the United States’ largely voluntary approach.

The proposed law classifies the failure to properly label AI-generated content as a “serious offense,” punishable by fines of up to €35 million ($38.2 million) or 7% of a company’s global annual revenue. The bill also prohibits subliminal AI techniques used to manipulate vulnerable populations, such as chatbots that encourage gambling addiction or AI-powered toys that promote risky behavior among children.

Another key provision bans the use of AI to classify individuals based on biometric data for scoring purposes, preventing organizations from assessing a person’s eligibility for benefits or predicting criminal behavior. However, authorities will still be permitted to use real-time biometric surveillance for national security purposes.

Spain’s newly established AI supervisory agency, AESIA, will oversee enforcement, except in areas such as data privacy, elections, finance, and crime, which will fall under their respective regulatory bodies. The bill must still pass the lower house before becoming law.

Verizon’s Warning on Slow Subscriber Growth Triggers Telecom Selloff

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Verizon Communications issued a warning about “soft” wireless subscriber growth in the first quarter, citing off-season promotions by competitors that have continued despite the typically slow post-holiday period. The announcement caused Verizon’s shares to plunge more than 7% on Tuesday, sparking a broader selloff in the U.S. telecom sector.

Chief Revenue Officer Frank Boulben, speaking at Deutsche Bank’s Media, Internet & Telecom Conference, noted that Verizon pulled back on customer incentives after an aggressive December quarter, while rivals maintained their promotional strategies, intensifying competition.

AT&T shares fell 5.3% as the company also reported elevated subscriber churn in January, while T-Mobile US saw a 4% decline. Analysts point to a shrinking pool of potential new mobile subscribers in an increasingly saturated market, with broadband giants like Comcast stepping up competition by targeting wireless customers.

Verizon also flagged a “slow start” for phone upgrades in the first quarter, attributing it to economic uncertainty and a lack of major new smartphone features. However, the company reaffirmed its annual target for single-digit growth in phone upgrades and expects a stronger rebound later in the year. Verizon anticipates adding more monthly-bill paying wireless subscribers in 2025 than the 900,000 it gained in 2024, supported by its customizable myPlan offerings.

Minimal Impact from Immigration Crackdown

Verizon and AT&T downplayed concerns about potential customer losses due to tighter U.S. immigration policies. President Donald Trump’s administration has intensified immigration enforcement, raising concerns about a reduced pool of new telecom customers. However, Boulben stated that any impact would be minimal, primarily affecting the low-end prepaid market rather than postpaid contracts that require formal identification.

Limited Threat from Satellite Internet

Both Verizon and AT&T dismissed concerns over competition from satellite internet providers like SpaceX’s Starlink, emphasizing that traditional wireless services remain more reliable and cost-effective. AT&T CFO Pascal Desroches acknowledged the potential of satellite-to-cell connectivity but described it as a limited business opportunity at present.

Meanwhile, T-Mobile has announced plans to launch its satellite-to-cell service with Starlink in July, priced at $15 per month.