India\s Jio and Airtel ink deals to bring in Musk\s Starlink

Pricing of the services will be a key point for consumers

India is the worlds second largest internet market but more than 670 million of its 1.4 billion people have no access to the internet, according to a 2024 report by GSMA, a trade body representing mobile network operators worldwide.

Satellite broadband provides internet access anywhere within the satellites coverage.

This makes it a reliable option for remote or rural areas where traditional services like DSL - a connection that uses telephone lines to transmit data - or cable are unavailable. It also helps to bridge the hard-to-reach digital divide.

Starlink is a clear winner here, says Tarun Pathak, an analyst at Counterpoint Research. If approved, the tie-ups give Musk access to 70% of Indias mobile users.

Musk has been eyeing a presence [in India] because its size will also give him economies of scale given how expensive satellite internet is, he says.

These partnerships are also a quick way for Starlink to comply with Indias data localisation laws, he adds.

For consumers, how the services are priced will be key, given mobile data in India is among the cheapest globally.

Satellite broadband plans cost around $150 a month, whereas mobile data is 150 rupees ($2; £1.33).

But a partnership with both Airtel and Jio could help bring prices down to around 3,000 rupees, says Roy.

Also, pricing may be better from Musks point of view and not rock-bottom, with Jio and Airtel offering the same services, he says.

For Airtel and Jio, the partnership with Musk is a clear result of the telecoms policy not favouring them, analysts say.

Jio was hoping that it would raise the entry barriers for others by pressing for the auction route. But since that hasnt happened, they must have felt it is better to change tack and do a tie-up, says Roy.

The Indian government on the other hand possibly felt it would be better to co-operate rather than compete with Musk with Trumps tariffs looming and a trade deal under discussion, he says.