The race between two of the world’s richest men, Elon Musk and Mukesh Ambani, is intensifying as they prepare to face off in India’s satellite broadband market.
After India’s government announced last week that satellite spectrum for broadband would be allocated administratively rather than through auction, this battle has only heated up.
Mr Musk had previously criticised the auction model supported by Mr Ambani.
Satellite broadband provides internet access anywhere within the satellite’s coverage.This makes it a reliable option for remote or rural areas where traditional services like DSL – a connection that uses telephone lines to transmit data – or cable are unavailable. It also helps to bridge the hard-to-reach digital divide.India’s telecom regulator has yet to announce spectrum pricing, and commercial satellite internet services are still to begin.
However, satellite internet subscribers in India are projected to reach two million by 2025, according to credit rating agency ICRA.The market is competitive, with around half a dozen key players, led by Mr Ambani’s Reliance Jio.
Having invested billions in airwave auctions to dominate the telecom sector, Jio has now partnered with Luxembourg-based SES Astra, a leading satellite operator.
Unlike Mr Musk’s Starlink, which uses low-Earth orbit (LEO) satellites positioned between 160 and 1,000 km from Earth’s surface for faster service, SES operates medium-Earth orbit (MEO) satellites at a much higher altitude, offering a more cost-effective system.
Receivers on the ground receive satellite signals and process it to internet data.
Mr Musk’s Starlink has 6,419 satellites in orbit and four million subscribers across 100 countries. He has been aiming to launch services in India since 2021, but regulatory hurdles have caused delays.
If his company enters India this time, it will boost Prime Minister Narendra Modi’s efforts to attract foreign investment, many say.
It will also help his government’s efforts to burnish its image as pro-business, countering claims that its policies favour top Indian businessmen like Mr Ambani