The race to dominate the global satellite internet market has become one of the most exciting battles of the 21st century, especially in the Indian context. On one side stands Reliance Jio, India’s largest telecom giant, and on the other, SpaceX’s Starlink, the ambitious space-based internet service provider led by Elon Musk. Both companies are looking to tap into the vast, underserved rural markets in India and beyond, offering internet connectivity that traditional broadband and mobile networks struggle to reach. As these two heavyweights face off, the stakes couldn’t be higher for India—a country with the second-largest internet user base in the world.
The Stakes: Connecting the Unconnected
With its diverse geography and enormous rural population, India has long struggled with providing consistent, high-speed internet access to all corners of the country. While urban areas have experienced a rapid internet penetration boom, rural India remains largely underserved, relying on expensive or slow connections. The pandemic, however, has accelerated the demand for better internet infrastructure, especially for work, education, and entertainment.
The stakes are significant as satellite broadband aims to provide internet access to remote regions of India, potentially reducing the country’s digital divide. Estimates suggest that satellite internet could attract two million subscribers by 2025.
Reliance Jio and Starlink are looking to bridge this connectivity gap by offering satellite-based internet services. Starlink, with its constellation of low Earth orbit (LEO) satellites, promises faster internet speeds with lower latency compared to traditional geostationary satellites. Meanwhile, Reliance Jio, leveraging its vast telecom infrastructure, is preparing to launch its satellite internet service in India, backed by its dominant position in the Indian telecom sector.
Reliance Jio: A Local Giant with Big Ambitions
Reliance Jio, which disrupted the Indian telecom market with its affordable 4G plans, has already established a strong foothold in the digital space. It boasts over 440 million subscribers, and its parent company, Reliance Industries, has been investing heavily in diversifying its portfolio into new-age technology. This includes ventures into cloud computing, e-commerce, and now satellite internet.
Jio’s satellite-based internet service, Jio Space, aims to offer high-speed broadband in remote and rural regions of India. Reliance has partnered with Bharti Airtel’s satellite arm, OneWeb, to launch low Earth orbit (LEO) satellites that will provide internet access in areas where terrestrial broadband infrastructure is limited or absent. With a massive distribution network, existing consumer base, and deep pockets for future investments, Jio is well-positioned to compete in this space.
Jio has also been pushing for greater control over its digital infrastructure through partnerships with global tech giants like Google and Facebook. By integrating satellite internet with its robust mobile and broadband services, Jio could seamlessly offer a comprehensive connectivity solution to millions of Indians.
Starlink: The SpaceX Vision for Global Connectivity
SpaceX’s Starlink project is one of Elon Musk’s most ambitious ventures. Starlink aims to create a global network of low-Earth orbit (LEO) satellites capable of providing high-speed, low-latency internet access anywhere on Earth. As of now, Starlink has launched thousands of satellites and already offers internet service in select regions across North America, Europe, and parts of Asia. India, with its massive population and demand for internet connectivity, is a prime target for Starlink’s expansion.
Starlink promises high-speed internet with latency as low as 20-40 milliseconds, significantly faster than traditional satellite internet. Its unique advantage lies in its constellation of LEO satellites that work together to provide internet service. This is a major leap forward compared to traditional satellites, which orbit much farther from Earth and often suffer from high latency and slower speeds.
Starlink’s entry into the Indian market is eagerly anticipated, and its global reach gives it a distinct edge. Starlink’s pricing is expected to be premium compared to traditional broadband services, but its appeal lies in its ability to offer seamless internet access to remote areas where conventional infrastructure is lacking.
The Battle
Reliance Jio’s AirFiber works in a distinctly different manner. It is a fixed wireless access (FWA) technology that uses 5G signals to deliver internet services to homes and offices. While the setup, such as the router and power cables, resembles that of Starlink, AirFiber relies on terrestrial towers rather than satellites:
- Speed: AirFiber provides high-speed internet, but its performance depends on the availability of 5G infrastructure.
- Cost: Being part of Jio’s extensive terrestrial network, AirFiber is a more affordable choice for urban and semi-urban areas.
- Reach: In contrast to Starlink, AirFiber may face limitations in remote areas where 5G towers are not yet available.
Although Jio AirFiber and Starlink Satellite Internet offer similar consumer-facing setups, their operational models are quite different. Starlink stands out with:
- Global Coverage: Starlink uses satellites to provide connectivity in regions where there is no terrestrial infrastructure.
- Versatility: Starlink offers solutions like Roam and Boats, making it suitable for users in remote, mobile, and maritime settings.
- Advanced Technology: With features such as self-orientation and the ability to connect to multiple satellites, Starlink offers superior reliability and speed.
Current Scenario
Elon Musk’s Starlink is now one step closer to launching its services in India after agreeing to comply with the government’s data localization regulations. The company is currently working on securing the required licenses and approvals to offer satellite internet in the country. The rules require companies to store data within India and allow government access for security purposes. To offer satellite internet, Starlink must obtain the GMPCS license from the Department of Telecommunications (DoT), which requires compliance with strict data localization. Starlink has agreed “in principle” to these rules but has not yet signed an official commitment. Starlink applied for the GMPCS license in October 2022 and is also seeking approvals from India’s space regulator, IN-SPACe.
Billionaire Mukesh Ambani’s Reliance has urged India’s telecom regulator to assess the potential reach of Elon Musk’s Starlink and Amazon’s Kuiper before granting satellite spectrum, citing concerns that local providers could be disadvantaged. Reliance’s letter marks Ambani’s final push in the ongoing dispute with Musk over how India should allocate satellite spectrum. While Reliance advocates for an auction, India has leaned toward Musk’s preference for an administrative allocation, in line with global practices.
Reliance believes that Starlink’s low-cost, satellite-based approach could pose a threat to its long-term profitability and market share, particularly since Starlink can potentially provide more data with less investment, while Reliance has already sunk billions into its infrastructure. Meanwhile, the Telecom Regulatory Authority of India (TRAI) is working on rules for satellite spectrum pricing and distribution.
The Future of Satellite Internet in India
As India moves closer to becoming a digital economy, the demand for internet connectivity, especially in rural and remote areas, continues to grow. The Reliance Jio vs. Starlink battle is set to play a crucial role in shaping how India accesses the internet in the coming decades. As the Telecom Regulatory Authority of India (TRAI) finalizes its recommendations on satellite spectrum allocation in December, the outcome is crucial for Starlink and domestic telecom operators alike.
This competition presents a significant opportunity for the Indian market. While Jio AirFiber is set to revolutionize internet access in urban areas with strong 5G infrastructure, Starlink has the potential to close the connectivity gap in India’s rural areas. The real winners in this race, however, will be the millions of Indians who will gain better access to high-speed internet, unlocking new opportunities in education, work, and beyond.
