Review of Jio and Starlink Satellite Communication Services Launch in India

In India, operators Jio and Airtel provide high-speed internet through 5G networks and fiber optic cables in many regions of the country. The initial cost for fiber optic broadband access is 399 rupees, whereas the Starlink service in Chicago, USA, starts from 5499 rupees.

This raises the question of the necessity of satellite internet in India. Previously, Starlink CEO Elon Musk expressed a strong stance regarding India, questioning the local system due to delays in service launch. In response, the Indian government stated that the country's policy is uniform for everyone.

The Indian government announced that three companies, including Starlink and Jio, have received licenses for satellite communication (SATCOM) in India. After these companies undergo security checks, an auction for spectrum allocation will take place.

Following the publication of Elon Musk's post concerning Ambani, Reliance Jio responded with its own post, declaring readiness for competition.

Satellite internet or communication service functions without using mobile towers. It utilizes numerous low Earth orbit satellites to create a coverage area, providing internet access anywhere. The advantage of satellite internet is that it continues to operate even during natural disasters such as earthquakes and tsunamis.

A service similar to Starlink would be useful in remote areas, mountain ranges, small islands, and border zones where laying fiber optic cables is impossible. In places where cable laying is difficult, satellite communication becomes extremely in demand.

Many parts of India still lack fiber optic cable coverage. Changes in weather conditions, mountainous terrain, or landslides often lead to damage to fiber optic lines, causing frequent communication outages. In such inaccessible locations, a service like Starlink would be very useful.

Elon Musk granted Starlink a license to operate in India, and after obtaining all necessary permissions, the company can begin providing services in the country. However, official information on prices in India has not yet been released. In Chicago, USA, the initial monthly plan costs 55 US dollars, which is equivalent to approximately 5224 rupees.

In cities like Delhi-NCR, there already exists fiber optic infrastructure that provides a high level of internet speed for both businesses and residents. Fiber optic connection guarantees a stable connection, low latency, and good download speed. Furthermore, Jio offers an initial fiber optic broadband connection for only 399 rupees, providing a speed of 30 Mbps.

Jio Platforms Limited (JPL), the parent company of India's largest telecom operator Reliance Jio, stated that satellite broadband services are unlikely to achieve significant scale in the Indian market, which is characterized by connectivity accessibility and widespread coverage. However, JPL noted the emergence of more competitive satellite broadband services as a potential factor capable of disrupting existing digital connectivity and representing one of the key risks to its business.

According to the Red Herring Prospectus (RHP) filed by JPL with the Securities and Exchange Board of India (Sebi) on Thursday, the company is developing satellite constellation-based connectivity solutions. JPL plans to secure satellite communication spectrum within the administrative allocation system and may enter into strategic partnerships for this purpose.

The company stated: 'We are evaluating the development of our own satellite constellation network and ground station infrastructure to provide satellite communication, especially in remote areas. We are also considering partnerships with leading global constellation providers to accelerate service availability.'

JPL believes that satellite communication is unlikely to expand significantly in the current Indian connectivity landscape due to the rapid growth of Fixed Wireless Access (FWA). This type of access offers performance comparable to fiber optics at relatively low installation and usage costs for consumers. Furthermore, JPL believes that satellite services are unlikely to compete effectively on price.

As an example, JPL cited that initial Starlink fixed broadband tariffs in the US cost around 4800 Indian Rupees (approximately 55 US dollars) per month, and in most African countries, they range from 2500 to 4500 Rupees (28–50 US dollars) per month. However, the company added that satellites may remain relevant for specialized use cases in hard-to-reach or remote locations where ground deployment is difficult.

JPL's planned satellite broadband service, based on a Low Earth Orbit (LEO) constellation of 1600 satellites, will be separated from Jio Satellite Communications Ltd. The latter has a joint venture with the global satellite service provider SES for Medium Earth Orbit services and has already obtained the necessary approvals.

Additionally, Elon Musk's Starlink and Eutelsat OneWeb, supported by Bharti Group, have applied for permissions to commence commercial services in India. All three companies await security clearances from the government.

JPL warned that the spectrum used for satellite services in India is administered, unlike terrestrial spectrum which is sold through auctions and allocated to individual operators. The company noted that this could lower entry barriers into the Indian market and create direct competition for fiber optic, FWA, and Jio's AirFiber services, especially in corporate and government communications, as well as in rural and underserved areas where mobile connectivity requires high capital investment or is complex to deploy.

In the RHP, the company indicated: 'This administrative allocation system can reduce economic barriers for satellite broadband service providers, including Low Earth Orbit (LEO) and Non-Geostationary Satellite Orbit (NGSO) constellation operators, compared to existing digital connectivity players who need to acquire spectrum through auctions.'

JPL added that satellite spectrum is a publicly available resource managed internationally by the International Telecommunication Union, and therefore does not belong entirely to any single company. The company cautioned: 'Consequently, there is no guarantee that the competitive advantages currently enjoyed by our JioFiber, JioAirFiber, and UBR-based fixed wireless access services over this technology will persist in the future. If satellite solutions scale faster than expected, become more cost-effective, or are adopted by competitors to fill coverage gaps and meet enterprise or government needs, our current offerings may become less competitive and require additional investment and increased costs.'

Despite JPL announcing the creation of its own satellite broadband network, the company also warned about uncertainty regarding the timeline or success of the deployment. It stated that it 'cannot guarantee whether we will deploy our satellite communication solutions in a timely manner, at all, or in a way that is competitive compared to alternative market offerings, or if we will receive the necessary regulatory approvals at all.'

Elon Musk, founder of SpaceX, stated that Starlink services should be accessible to more people in India, and that the emergence of competition will benefit customers. He noted that even if Reliance Jio earns less money, the company will not go bankrupt.

These statements came shortly before the expected Initial Public Offering (IPO) of Jio, which could be the largest in India and value the company at over $100 billion. Musk once again spoke out against the Reliance group, calling it a 'de facto monopolist in India.'

In his post on his social media platform X, in response to user messages that he claimed supported Reliance Industries Ltd (RIL), Musk criticized the arguments put forth by the 'army of internet propagandists of Ambani.' He called them 'absurd hypocrisy and hyperbole,' pointing out the contradiction: first they claim Starlink cannot compete with the monopolist's low prices, and then they state that Starlink will be too strong a competitor.

Musk emphasized that competition always benefits the average citizen of India by providing them with more options. He added that if Starlink turns out to be too expensive in India, no one will use it, so SpaceX must make the prices affordable.

His comments followed a series of messages questioning delays in the approval of Starlink services in India and suggesting that some large business conglomerates, particularly the Reliance group, are hindering Starlink's entry into the Indian market.

Earlier, on Saturday, Musk addressed Prime Minister Ambani, apologizing for not realizing that he was the 'real boss of India.' He asked whether Ambani was willing to allow Starlink to compete despite the preference for maintaining 'monopolistic exploitation of the great people of India.'

He also pointed out that Starlink could be useful to users, including small businesses and children's education, in areas of India lacking internet access, and could save lives during natural disasters when other communication systems fail.

However, Musk's accusations drew sharp criticism. Nishikant Dubey, Chairman of the Parliamentary Committee on Communications and Information Technology, responded that the government is aware of the problems faced by the country's security services through Starlink since 2013–2014, and that the Ministry of Defence, the Ministry of Home Affairs, and investigative agencies suffer from these threats' dangerous games. He called for providing internet access to the poor in their own country, America, at affordable rates first, before making accusations, noting that India is a healthy democratic sovereign nation that does not change its security policy under pressure or on social media.

Rajiv Kumar, former Vice Chairman of NITI Aayog, stated that India should challenge Musk's monopoly in space communications by using the $145 billion USO fund. He proposed using these funds to assist Indian telecom operators such as Airtel and Reliance Jio so they can urgently deploy their satellite networks to compete with Elon Musk's Starlink. He believes this would be a better use of funds than endlessly waiting for BSNL to develop the necessary capacity for universal coverage.

Eutelsat OneWeb (now Eutelsat Group), supported by the Bharti group, and Jio Satellite Communications, a subsidiary of Reliance Jio, have received licenses, but they are still awaiting security clearances. Starlink received its latest approval in 2025, while Eutelsat and Jio received theirs earlier.

Jio is independently building its constellation of Low Earth Orbit (LEO) satellites, which will compete with global players like Starlink and Amazon Leo.

The government refuted Musk's claims last week, stating that all satellite broadband providers must comply with safety regulations to operate in India. The Ministry of Communications stated that the country's authorization system for telecommunication and satellite services is 'fair and non-discriminatory,' and any suggestion of its selective application is 'unfounded and erroneous.'

Telecom Minister Jyotiraditya Singh 'clarified the situation' on Friday, stating that India does not permit monopolies in any sector, including satellite communications, and that licenses were issued to all three companies—Reliance Jio, OneWeb, and Starlink—that applied. He also mentioned that the fourth interested party, Amazon Leo, must undergo the same process. Security clearance is conducted by the Ministry of Home Affairs, which will also issue final approvals. Singh added that the government is in discussions with the Telecom Regulatory Authority of India regarding satellite spectrum pricing, and only after all entities meet or comply with the security conditions can they begin operations.