Billionaires Collide: Musk and Ambani Face Off in Satellite Broadband Race | Tech News

Tech News

India’s satellite internet market is becoming a battleground as Elon Musk’s Starlink and Mukesh Ambani’s Reliance Jio vie for dominance. In a price-sensitive market, Jio’s affordable plans challenge Starlink’s higher-priced services. With the government opting for administrative spectrum allocation, the competition intensifies, promising better connectivity for consumers.

India’s satellite broadband market is heating up as two of the world’s richest men, Elon Musk and Mukesh Ambani, prepare to compete for dominance. Elon Musk’s Starlink and Mukesh Ambani’s Reliance Jio are both set to launch satellite-based internet services throughout the country, creating a high-stakes environment in a market that is sensitive to pricing.

Starlink, Musk’s satellite internet venture, recognizes the vast potential within India’s diverse landscape. With plans to deliver high-speed internet via a network of low-Earth orbit satellites, Starlink aims to connect remote regions that lack traditional internet infrastructure. This initiative could significantly benefit rural communities by granting them access to essential digital services and information.

The Pricing Challenge?

Nonetheless, pricing may pose a considerable obstacle for Starlink in India. Currently, Starlink’s residential plan is priced at $120 per month (around ₹9,963) for unlimited data without a contract, targeting rural households and fixed locations. The Roam plan costs $150 per month (approximately ₹12,454) for unlimited data while traveling, making it suitable for RVs and travelers. In a country where affordability is paramount, these rates might be prohibitive for many potential users.

Given the price-sensitive nature of the Indian market, it remains uncertain whether Starlink can adjust its pricing to remain competitive. To attract Indian consumers, Starlink may need to significantly reduce its prices or introduce customized plans that align with the average user’s budget. Without more affordable options, Starlink could find it challenging to establish a presence against established competitors like Reliance Jio, which already provides economical internet services.

Reliance Jio’s Competitive Edge

Mukesh Ambani’s Reliance Jio has transformed India’s telecommunications landscape by offering some of the most budget-friendly plans available through services like Jio Fiber and Jio Air Fiber. This pricing approach has made internet access possible for millions and has solidified Jio’s position as a market leader.

According to TRAI statistics at the end of March 2024, India has 40.06 million fixed broadband customers and 883.22 million mobile internet customers. Reliance Jio leads the fixed broadband market with 11.27 million customers and boasts 469.73 million mobile internet customers, maintaining its leadership in both segments.

Jio’s Strategic Moves in Satellite Broadband

In 2022, Reliance Jio partnered with Luxembourg-based SES to create a 51:49 joint venture aimed at providing fast broadband connectivity through satellites. This collaboration positions Jio alongside competitors like Bharti Group-backed OneWeb, Elon Musk’s Starlink, Amazon’s Project Kuiper, and the Tatas, all of whom have also entered this space.

Reliance Jio has reportedly completed the necessary submissions to the Indian National Space Promotion and Authorization Centre (IN-SPACe), which oversees the space industry. With approvals expected soon, Jio is gearing up to launch its satellite services. Mathew Oommen, Jio’s president, emphasized that the satellite services unit is ready to roll out JioSpaceFiber services shortly after receiving spectrum allocation.

What is Satellite-Based Broadband

Satellite-based broadband utilizes satellites orbiting the Earth to provide internet connectivity. Companies like Starlink deploy constellations of satellites in low-Earth orbit to deliver high-speed internet with minimal latency. This technology is particularly beneficial for:

• Remote Areas: Providing internet access to regions lacking traditional infrastructure.
• Mobility: Ensuring connectivity on airplanes and ships.
• Disaster Relief: Facilitating communication services when ground networks are compromised.

Users need a small satellite dish to connect, making it a viable option for hard-to-reach locations.

Other Contenders in the Market

The competition extends beyond Musk and Ambani, with Bharti Airtel’s OneWeb and Amazon’s Project Kuiper also making their mark:

• OneWeb: Supported by Bharti Enterprises, OneWeb has been actively developing its satellite constellation. As of March 26, 2023, the company had successfully launched 618 satellites into orbit.
• Amazon’s Project Kuiper: Amazon is set to deploy a network of satellites aimed at delivering global broadband connectivity.
• The Tatas: The Tata Group has also revealed its intentions to enter the satellite broadband sector, adding to the competitive landscape.

The Spectrum

The Indian government has opted to allocate satellite communication spectrum through administrative methods, aligning with international practices. Telecom Minister Jyotiraditya Scindia remarked, “Satellite spectrum around the world is allocated administratively. So, India is not doing anything different from the rest of the world.” This move supports Starlink’s position and could impact the competitive dynamics within the industry.

The Race for Market Leadership

As the satellite broadband market is projected to expand rapidly, these companies are in a race to secure their foothold. IN-SPACe estimates that India’s space economy could soar to $44 billion (around ₹3.65 lakh crore) by 2033, increasing its global share from 2% to 8%. This growth opens up substantial opportunities for all stakeholders involved.

In a market where affordability is key, Reliance Jio’s history of offering cost-effective services may give it an edge. Whether Starlink can adjust its pricing strategy to appeal to the price-sensitive Indian consumer remains a critical question. As these billionaires invest in advanced technologies to capture the market, consumers stand to benefit from improved connectivity and access to information.

Next Article