Union Minister for Railways, Communications, Electronics, and Information Technology, Ashwini Vaishnaw, has deleted a social media post in which he extended a warm welcome to SpaceX’s Starlink ahead of its anticipated entry into the Indian market.
The minister had posted on X on 12 March, “Starlink, welcome to India! Will be useful for remote area railway projects.” However, the post was later removed without explanation, sparking speculation over the government’s stance on the satellite internet provider.
Vaishnaw’s message had surfaced amid significant developments in India’s telecommunications sector, as Jio Platforms Ltd. and Bharti Airtel Ltd. both announced unexpected partnerships with SpaceX to integrate Starlink’s satellite broadband services. The move marks a strategic shift for the two telecom giants, which had previously opposed Starlink’s entry due to concerns over spectrum allocation and potential competition.
A strategic shift in telecom
The agreements, though still awaiting regulatory approval, indicate a growing recognition of Starlink’s potential role in India’s digital expansion. Analysts suggest the satellite internet provider could play a crucial part in strengthening railway connectivity, enhancing digital infrastructure, and advancing government initiatives aimed at improving rural access to high-speed internet.
Utkarsh Sinha, Managing Director at Bexley Advisors, remarked that Jio and Bharti Airtel are now viewing satellite broadband as an essential infrastructure component rather than a competitive threat. This shift, he noted, allows them to retain control over India’s internet market while accommodating Starlink’s growth.
Jio and Airtel’s new strategy
As part of its agreement, Jio, the country’s largest telecom operator, will stock Starlink equipment in its retail outlets across India, providing the satellite service provider with an extensive distribution network. Starlink, which currently operates in over 125 markets worldwide, will gain significant market access through this arrangement.
Meanwhile, Airtel has announced plans to collaborate with Starlink by leveraging each other’s network infrastructure to expand coverage. Although specific details remain unclear, Airtel is also exploring ways to offer Starlink’s services to its enterprise and consumer customers.
Regulatory and competitive landscape
The backdrop to these developments includes a long-standing debate over spectrum allocation for satellite internet services. While Reliance Jio had invested $19 billion in airwave auctions, it had raised concerns over potentially losing broadband customers to Starlink. However, regulatory decisions have largely aligned with the approach advocated by SpaceX chief Elon Musk, who had pushed for direct allocation rather than competitive bidding for satellite spectrum.
(With inputs from Bloomberg)
