According to Reuters, Elon Musk’s Starlink has 6,419 satellites in orbit and four million subscribers in 100 countries. The competition between Musk and Mukesh Ambani in India’s satellite broadband market is heating up, especially after the government announced that satellite spectrum would be allocated administratively rather than through auction. Musk has criticized Ambani’s support for the auction model. Satellite broadband is crucial for providing internet access in remote areas where traditional services are unavailable, helping bridge the digital divide. India’s telecom regulator has yet to announce spectrum pricing, but satellite internet subscribers are projected to reach two million by 2025. The market is competitive, with key players like Ambani’s Reliance Jio investing in satellite technologies. Starlink uses low-Earth orbit satellites for faster service, while SES operates medium-Earth orbit satellites at a higher altitude. Musk has been aiming to launch services in India since 2021, but regulatory hurdles have caused delays. Ambani and other Indian operators support auctions for fair competition, while Musk advocates for administrative spectrum allocation. The promise of the vast Indian market, where a significant portion of the population lacks internet access, makes satellite broadband a crucial technology. Pricing will be a key factor in India, where mobile data is among the cheapest globally. According to technology analyst Prasanto K Roy, Reuters Musk, with his deep pockets, could easily provide a year of free services in certain areas to establish a presence in the local market. Starlink has already reduced prices in Kenya and South Africa. In India, many remote regions still lack internet connectivity. However, it may not be a simple task. A 2023 report by EY-Parthenon highlighted that Starlink’s higher costs, nearly 10 times those of major Indian broadband providers, could pose challenges without government support. Additionally, the deployment of more LEO satellites, like those used by Starlink, for global coverage increases launch and maintenance expenses. While some concerns from Indian operators may be baseless, it is believed that businesses will prefer terrestrial networks over satellite options, except in sparsely populated areas. Mr. Musk may have an advantage as a first mover, but the satellite market is known for its slow growth. The competition between two of the world’s wealthiest individuals for dominance in the space internet industry is now in full swing.
