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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.

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.

Starlink Partners with Airtel to Compete with Reliance Jio in India’s Broadband Market

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Elon Musk’s Starlink has signed a strategic partnership with India’s second-largest telecom company, Airtel, to bring satellite internet services to the country, intensifying competition with Mukesh Ambani’s Reliance Jio. The agreement, contingent on government approval, will allow Starlink to leverage Airtel’s retail network for distribution across India.

Airtel stated on Tuesday that the companies would explore ways to utilize each other’s network infrastructure to improve coverage, though specific details were not disclosed. Additionally, Airtel will consider offering Starlink services to its business and enterprise customers.

The announcement follows Indian Prime Minister Narendra Modi’s recent meeting with Musk in Washington, where they discussed technology, space, and innovation.

Starlink’s entry into India has faced regulatory hurdles, particularly a dispute with Reliance Jio over spectrum allocation. While Reliance Jio pushed for a spectrum auction, the Indian government aligned with Musk’s stance favoring administrative allocation, a move in line with global practices. Analysts suggest an auction would have required significantly higher investment, potentially discouraging foreign entrants.

Reliance Jio, which invested $19 billion in spectrum auctions, is concerned that Starlink could capture broadband users and eventually disrupt its data and voice services.

Airtel already has a similar partnership with global satellite operator Eutelsat, where its parent company holds a stake. Meanwhile, Eutelsat’s OneWeb and Reliance Jio have secured approvals from India’s space regulator to launch commercial satellite broadband services.