JIO Signs Deal with SpaceX Starlink Internet to Bring in India After Airtel: Jio Platforms, parent of Reliance Jio, on Wednesday announced an agreement with Elon Musk-owned SpaceX to bring Starlink’s satellite internet services to its users in the country. The announcement by Jio came after its peer Airtel announced a similar pact with SpaceX on Tuesday.
The agreement by SpaceX with both the telecom operators to retail its services in India, is subject to the US satcom getting a licence to operate, which is currently under evaluation by the government.
As part of the agreement with SpaceX, Jio will make Starlink solutions available through its retail outlets as well as through its online storefronts. The pact is in the nature of a downstream distribution agreement.
Jio will not only offer Starlink equipment in its retail outlets but will establish a mechanism to support customer service installation and activation. Further, Starlink complements JioAirFiber and JioFiber by extending high speed internet to the underserved locations in a quick and affordable manner, Jio said in a release.
Interestingly, telecom operators in India have been at loggerheads with Starlink over spectrum allocation method and licensing rules for satcom operators in the country. The telecom operators fear that companies like Starlink would eat into their market share by targeting the elite retail customers in urban areas and therefore they should be given the spectrum the same way as telecom operators, that is through auction route.
Notably, Jio has a joint venture with Luxembourg-based satellite operator SES to offer satellite internet services in India. However, SES currently has a portfolio of over 70 satellites compared to Starlink’s, which has over 7,000 satellites, thereby also giving an opportunity to Jio to be at par with the competition in the space.
“Our collaboration with SpaceX to bring Starlink to India strengthens our commitment and marks a transformative step toward seamless broadband connectivity for all,” said Mathew Oommen, Group CEO of Reliance Jio.
“By integrating Starlink into Jio’s broadband ecosystem, we are expanding our reach and enhancing the reliability and accessibility of high-speed broadband in this AI-driven era, empowering communities and businesses across the country,” Oommen added.
Both the companies will explore how Starlink can extend Jio’s offerings and how Jio can complement SpaceX’s direct offerings to consumers and businesses.
“We are looking forward to working with Jio and receiving authorization from the Government of India to provide more people, organizations and businesses with access to Starlink’s high-speed internet services,” said Gwynne Shotwell, president and chief operating officer, SpaceX.
Analysts said barring the regulatory stance by telcos, Airtel and Jio partnership with Starlink is directionally positive for the business. The take up will also depend on what kind of pricing Starlink will have for India, they said.
Starlink’s application for a licence is being evaluated for security checks in the country. Sources said the company has submitted its formal acceptance of the key conditions such as local data storage, set by the government for launching satellite broadband services in the country. Starlink’s application is being evaluated by the ministry of home affairs and security agencies.
The government is also yet to release the rules for satellite spectrum allocation via administrative route (non-auction) and the pricing of spectrum. Besides, the Telecom Regulatory Authority of India is also expected to soon come up with its recommendations on satcom spectrum pricing and other terms.