These days, Elon Musk seems to have taken Narendra Modi’s place. Earlier, there was a war over who is closer to Prime Minister Modi. Now, let there be a fight over who is closer to Musk, Mukesh Ambani or Sunil Bharti Mittal.
As soon as the news came on March 11 that Mittal’s Airtel had signed an agreement with Starlink, social media users and newspapers started making jokes about it, saying that Ambani will now be challenged, he will no longer be the king of the telecom sector. Modi may have tweeted a photo of Vantara, it was said, but was still giving away Ambani’s business to Airtel.
Then, on the morning of March 12, news came that Ambani’s Jio had also signed an agreement with Starlink. This left people confused. Musk’s company is only one – Starlink – so how can both Airtel and Jio have agreements with it? In the Indian market, Airtel and Jio are stiff competitors. Details about how these agreements were made are scarce.
The politics of proximity: Modi and Musk
In a country where debates often focus on historical figures like Aurangzeb, the sudden shift towards discussing satellite internet highlights the rapid pace of technological advancements. Musk met Prime Minister Modi in Washington, a meeting that was notable for its informal nature. The statement issued by the Government of India after the meeting did not mention any collaboration in the telecom sector, highlighting instead cooperation between the American National Science Foundation and Indian science agencies to develop next-generation technology. There was no mention of Starlink wanting to do deals with Indian companies.
Musk did not visit Delhi for these agreements; instead, he met Modi with his children in Washington. Looking at photos of that meeting created consternation among some Indians: while Modi sat with senior ministers and officials on one side, Musk sat with his aunt and children on the other. In the past, American business leaders would often visit Delhi to meet with Modi, signaling India’s growing importance. However, Musk’s approach was different, reflecting a shift in how international business is conducted with India.
The technology and its implications
Starlink, a part of Musk’s SpaceX, boasts over 6,400 low Earth orbit satellites, accounting for two-thirds of all satellites orbiting the Earth. This technology offers stable internet connectivity without the need for laying optical fibers, a significant advantage in areas where traditional infrastructure is lacking. Starlink already serves over 400,000 customers worldwide, with pricing varying from $120 per month in the US to as low as $10 in Kenya.
The entry of Starlink into India raises several questions about the government’s strategy regarding internet connectivity. In 2020, Modi announced plans to connect all Indian villages with optical fibre within 1,000 days. However, as of now, only about 214,313 gram panchayats have been connected under the Bharat Net Project, which aims to cover over 268,000 rural local bodies.
Critics argue that the Modi government’s focus on optical fiber might have been misplaced, given the advancements in satellite internet technology. There was no mention of satellite internet in Modi’s speeches until recently, raising questions about whether the government was aware of these developments while investing heavily in optical fibre.
The partnership between Airtel and Jio with Starlink has also raised eyebrows, given their competitive nature. Both companies have invested heavily in laying optical fibre networks, but now they are embracing satellite internet. This shift has led to speculation about the future of smaller telecom companies like BSNL and Vodafone Idea. The government’s efforts to prevent a monopoly by supporting Vodafone Idea might be undermined if Starlink becomes the dominant player in satellite internet.
The role of government and politics
The issue of spectrum allocation for satellite internet has become contentious. Reliance Jio has lobbied for auctions, arguing that allocation without stakeholder feedback is unjustified. However, Musk has tweeted in support of allocation, citing international norms. The Indian government has since announced plans to allocate spectrum administratively, which Musk has welcomed.
Starlink has not yet received regulatory approval in India due to national security concerns. This delay has raised questions about the government’s priorities and whether it is prepared to handle the implications of Starlink’s entry into the Indian market.
The government’s decision to allocate spectrum administratively has sparked comparisons with past controversies, such as the 2G spectrum scam. Critics argue that auctions would have generated more revenue for the government, while allocation could favor specific companies. The involvement of Musk in this process has added a new layer of complexity, with some questioning whether the government is favouring foreign interests over domestic players.
The implications
The entry of Starlink into India marks a significant shift in the country’s telecom sector. As both Airtel and Jio partner with Musk, the future of traditional optical fibre networks and smaller telecom companies like BSNL and Vodafone Idea hangs in the balance. The government must address these challenges while ensuring that India’s telecom sector remains competitive and inclusive. The coming months will be crucial in determining how India navigates this new technological landscape.
The partnership between Indian telecom giants and Starlink has broader implications for the Indian economy and technology sector. It highlights the growing influence of foreign companies in India’s strategic sectors and raises questions about the government’s role in regulating these partnerships.
As India moves forward with integrating satellite internet into its telecom infrastructure, it must balance the benefits of new technology with the need to protect domestic industries and ensure equitable access to connectivity across the country. The future of India’s telecom sector will depend on how effectively these challenges are addressed.
Critics argue that the Modi government’s approach to regulating foreign investments and technologies, such as Musk’s Starlink, may favour foreign interests over domestic players. This has sparked debates about the government’s priorities and whether it is prepared to handle the implications of such partnerships on the Indian economy.
Ravish Kumar is a senior journalist. His YouTube channel is @ravishkumar.official.
