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Bharti Airtel, telecom major, signed an agreement with Elon Musk’s SpaceX to bring Starlink’s high-speed internet services to India.
This deal will go through only if SpaceX gets permission to sell Starlink in India.
The deets: as per the exchange filing by Bharti Airtel, the partnership sets the stage for both the further exploration and enhancement of business offerings.
Why Starlink: Airtel sees Starlink as a valuable addition to its offerings, especially for rural and remote connectivity, where traditional networks struggle.
The partnership will explore combining Starlink with Airtel’s network and using its infrastructure to support SpaceX in India.
Why it matters: Airtel can offer Starlink-powered high-speed internet to businesses, boosting its B2B segment, especially for industries needing connectivity in remote locations. Moreover, integrating Starlink with Airtel’s existing telecom infrastructure strengthens its service offerings without heavy investments in new ground networks.
By collaborating early, Airtel gains insider access to India’s evolving satellite broadband policies, positioning itself as a key player in the space. Meanwhile, the partnership keeps Airtel ahead of rivals like Reliance Jio, which is also eyeing the satellite broadband market.
Background: in 2024, a heated verbal clash broke out during a meeting between global satellite giants Starlink, Jeff Bezos-owned Amazon Kuiper, and India’s top three telecom operators. The discussion was about how to set prices for satellite networks and other related topics.
Reliance Jio, Airtel, and Vodafone Idea called for fair competition, citing concerns over disadvantages. Starlink pushed back, saying if telecom companies can share 5G network space, satellite network access should also be given without bidding.
After the talks, Reliance Jio and Bharti Airtel pushed for fair competition in satellite communications. The government is now finalizing licensing and network allocation for Elon Musk’s Starlink.
Big picture: the new telecom law permits satellite spectrum to be assigned administratively for a fee, unlike terrestrial spectrum, which is typically auctioned. However, the final details of pricing and allocation are still under deliberation.
Government policies on satellite communications are still evolving, and collaborating with SpaceX could give Airtel an early-mover advantage in the space. The deal also allows both companies to leverage each other's infrastructure.
Zoom out: India boasts over 1.19 billion telephone subscribers, making it the world's second-largest telecom market. The country also comes 2nd in internet usage with approximately 949 million broadband subscribers.
India has decided to give satellite internet companies access to network signals for a fixed price instead of making them compete in a costly bidding war. The country is making it easier and cheaper for satellite internet companies to operate. This move attracts foreign firms by reducing costs & speeding up their market entry.
Worth noting, Bharti Airtel ended more than 2% higher today.
