Musk and Ambani: Race to the Stars
As the Indian government moves to allocate satellite spectrum administratively, both Elon Musk and Mukesh Ambani prepare for a high-stakes race to provide internet services in remote regions. Who will win the space internet war?
The battle for the stars is well and truly underway, and no, it’s not a sci-fi blockbuster. This is the real-life showdown between two of the planet’s wealthiest men, Elon Musk and Mukesh Ambani, as they race to conquer the satellite broadband market in India. The stakes are sky-high, and it’s shaping up to be a broadband bonanza of astronomical proportions.
Just when we thought things couldn’t get spicier in India’s already sizzling telecom scene, the government tossed in a curveball by deciding that satellite spectrum for broadband won’t be auctioned but allocated administratively. A decision that’s stirred the pot quite a bit, I must say.
Now, Mr Musk, never one to shy away from voicing his opinions on Twitter – or “X” as he’s now calling it – had a few choice words about the auction method, which, unsurprisingly, Mr Ambani happens to be quite fond of. You see, the auction model, which has served Ambani’s Reliance Jio rather well in the past, has allowed him to snap up airwaves like a kid in a sweet shop, solidifying his grip on the Indian telecom market.
Satellite broadband, if you’re wondering, is a fancy way of saying, “internet from space”. It’s a lifesaver for those living in rural or remote areas, where you’re more likely to bump into a cow than a fibre-optic cable. The beauty of it? You get internet access wherever the satellite’s beams can reach – no phone lines or pesky infrastructure needed.
India’s Telecom Regulatory Authority is yet to reveal how much all this is going to cost, and the commercial rollout of satellite internet is still on the horizon. However, the buzz is palpable. According to ICRA, a leading credit rating agency, India could see as many as two million satellite internet subscribers by 2025. And with around 40% of the population still offline, that’s a lot of potential customers up for grabs.
So, who’s lining up for this space race? Unsurprisingly, it’s Ambani’s Reliance Jio leading the pack, having partnered with SES Astra, a Luxembourg-based satellite operator. But here’s where it gets interesting: while Musk’s Starlink relies on low-Earth orbit (LEO) satellites zooming around at altitudes of 160 to 1,000 km, SES plays the long game, using medium-Earth orbit (MEO) satellites that hang out much higher. This could make SES a more cost-effective option, at least on paper.
Starlink, on the other hand, already boasts a fleet of over 6,000 satellites and a whopping four million subscribers across 100 countries. Musk has been trying to get a foot in the Indian door since 2021, but it’s been a bit like trying to herd cats, with regulatory hurdles galore. But should he succeed this time, it could provide a much-needed boost to Prime Minister Narendra Modi’s campaign to attract foreign investment and spruce up India’s image as a pro-business destination. It might even counter the whispers that the government tends to favour local giants like Ambani.
And let’s not forget the lobbying war. Reliance, clearly unhappy with the government’s decision to bypass auctions, has been quite vocal, firing off letters to the telecom regulator urging a “level playing field” between satellite and terrestrial networks. They argue that advancements in satellite technology have blurred the lines between the two, and spectrum allocation via auction is the only fair way to go.
Musk, for his part, was quick to counter on X, cheekily offering to ring up Mr Ambani for a friendly chat. “I will call [Mr Ambani] and ask if it would not be too much trouble to allow Starlink to compete to provide internet services to the people of India,” he quipped. A little bit of transatlantic banter, or a genuine peace offering? Who knows.
Now, you might think that Musk’s entry into India would be a win-win, but there’s more to it than meets the eye. Sunil Mittal, chairman of Bharti Airtel and another telecom bigwig, has thrown his hat in the auction ring too. He’s of the opinion that anyone looking to cater to urban customers ought to “buy spectrum like everyone else”. Between them, Mittal and Ambani control a staggering 80% of India’s telecom market.
So, is this just a case of old guard versus new, or is there more at play? Telecommunications expert Mahesh Uppal suggests that it’s all about upping the ante for international players like Musk. In other words, if you can’t beat them, make it more expensive for them to play. After all, no one likes competition when they’re sitting comfortably at the top, do they?
At the heart of it all is India’s vast, underserved market. With nearly 1.4 billion people and around 40% still without internet access, there’s plenty of room for expansion. But pricing will be key. India has some of the world’s cheapest mobile data, and Starlink’s current pricing, ten times higher than local providers, could prove a tough sell without government subsidies.
Still, never count Musk out. As technology analyst Prasanto K Roy points out, “Musk has deep pockets.” There’s nothing stopping him from slashing prices or even offering a year of free service to get his foot in the door. After all, who doesn’t love a bargain, especially in India?
So, there we have it: a race to the stars between two of the wealthiest men on Earth. With billions at stake and no shortage of drama, it’s anyone’s guess who’ll emerge victorious. But one thing’s for sure – the internet of space just got a lot more interesting.
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