Musk Star-links Jio & Airtel

THE TAKE

Starlink Deal Done, What Plot Twist Will Elon Musk’s Tesla And SpaceX Bring To India? 

Cooked in Washington and served in India. That’s perhaps the best way to describe the astounding three-way deal between satellite telecom provider Starlink, owned by Elon Musk, and Indian telecom rivals Reliance’s Jio and Bharti’s Airtel.

News is that both Jio and Airtel will act as distribution, installation and service partners for Starlink’s internet broadband service. Effectively, they will also hand over their consumers to Musk.

Given that both were competitors to Starlink, wanted to keep the company out and are fighting each other in India as well, this is either a deal made in heaven or in the White  House.

Fait Accompli 

The question, of course, is whether the two Indian telecom majors had any choice in the matter or this was effectively a fait accompli. It smells suspiciously like the latter.

It’s like Company X wants to launch a new car for which it has the technology and capability but not the permissions. And now, it is told to open sales and service centres for a rival from overseas, who in most situations, company X would have tried to keep out. Or at least fought tooth and nail for market share.

Satellite internet is a good to have complimentary service, there is nothing to say it is a must have or that calls for a deal of this nature to be pushed through. Unless it is of course a Musk have, as evidently is the case.

Remember, Reliance and Airtel have both promised endless and seamless 5G mobile connectivity across India, which in most cases would be superior to most satellite broadband connectivity as we know it and at the price we know of. Unless the location is so remote that a satellite would work best or if services fail. 

There is no denying the importance of satellite-based communications as a backup, given India’s entire television content revolution of the last few decades was built on satellites and dishes still perched on our rooftops. Till fibre internet and high-speed data on mobile phones came along.

But wherever you live in India, you would admit there are very few places in the country that lack data connectivity now. Unless you are really trying to live an off the grid existence. 

There is also the cost, the hardware could cost upwards of Rs 20,000 and a monthly bill of Rs 5,000 or more unless the prices are specifically tuned for the Indian market. "While it has been surprising, it's a prudent strategy for Starlink to enter the India market and a win-win for all the parties involved earlier competing for the pie and now cooperating and sharing," Neil Shah, co-founder of research firm Counterpoint and a frequent guest on The Core Report, told Reuters.

The Core has reached out to Reliance’s Jio and Bharti’s Airtel over email and will update this piece when they respond. 

The agreements come on the heels of Prime Minister Narendra Modi’s US visit where, reports suggest, space, mobility, technology and innovation were discussed. 

Starlink has been trying since 2022 for licenses to operate commercially in India, with no clear timeline yet on a decision. It has been delayed for reasons including national security concerns. 

What Next From Musk?

Nothing linked to satellites in India is easy. Carrying a satellite phone at this point can get you arrested and jailed unless you have specific permissions. So satellite internet is viewed through the same lens of national security. 

So SpaceX must get spectrum allocated and work on local data storage apart from other security clearances. Between Airtel and Jio, obviously, there is enough firepower to get things going. Though in retrospect, they had not succeeded either, along with other partnerships they had tied up.

A report in Mint said that at the India Mobile Congress (IMC) 2024, Sunil Mittal of Airtel supported the stance of rival Mukesh Ambani's Jio that said satellite companies need to pay license fees and buy airwaves for their telecom services, as legacy telecom companies have to.

Mittal had said that he did not have anything against Starlink but wanted all companies to have a level playing field.

“They need to buy the spectrum as the telecom companies do, and need to pay the license as the telecom companies do, and also secure the networks of the telecom companies,” Mittal said at the conference.

Earlier, Jio also shared similar views, saying satellite firms should be treated at par with telecom companies.

Incidentally, both Jio and Sunil Mittal have ties with Starlink’s rivals. Mittal is an investor in OneWeb Ltd and wants to roll out services in India. Reliance Jio formed a joint venture with Luxembourg-based SES in 2022 and unveiled JioSpaceFiber in October 2023. Jio had planned to deliver high-speed satellite Internet “at highly affordable prices” through this joint venture. 

Of course, it seems everyone is friends now. 

“We applaud Jio’s commitment to advancing India’s connectivity,” said Gwynne Shotwell, president and chief operating officer of SpaceX. “We are looking forward to working with Jio and receiving authorisation from the Government of India to provide more people, organisations and businesses with access to Starlink’s high-speed internet services.”

With the satellite internet business tied up with a nice ribbon, it would be interesting to see how Musk’s two other ventures, Tesla cars and SpaceX rockets, enter India and what surprises we have in store.

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 3.61% 

This is India’s retail inflation based on the Consumer Price Index (CPI), which eased to a seven-month low of 3.61% in February 2025, down from 4.31% in January, according to the latest data from the central government. The drop is largely due to slowing food price hikes, marking the first time in six months that inflation has fallen below RBI’s 4% target. While this may provide relief for households, in the past experts have cautioned that inflation could rise again due to extreme weather and global supply chain disruptions. With easing inflation, another RBI rate cut in April is now more likely.

—⚡ Tata’s EV Troubles! Tata Passenger Electric Mobility, Tata’s local EV unit, which recently unveiled its premium Avinya models, is now expected to face production delays, Reuters reported. The setback follows Jaguar Land Rover’s (JLR) decision to shelve plans to manufacture EVs at Tata Motors’ upcoming $1 billion Tamil Nadu plant due to sourcing challenges and slowing demand. Originally, JLR planned to produce 70,000 EVs annually, alongside 25,000 Tata EVs. With shared platforms and joint component sourcing now uncertain, Tata is reportedly redesigning its Avinya lineup, pushing its launch beyond the previously expected 2026-2027 timeline.

—💻 IT Blues? Uncertainty from US trade tariffs and macroeconomic headwinds in key markets may slow India’s IT services sector, with revenue growth projected at 4-6% in FY26, slightly above FY25’s 3-5%, according to the Investment Information and Credit Rating Agency (ICRA). Attrition is stabilising at 12-13%, and hiring will stay low until growth rebounds. Operating profit margins are expected to hold at 22.5-23%. Meanwhile, investments in GenAI are driving new deals, with BFSI and healthcare leading adoption, ensuring steady contract inflows despite elongated deal cycles.

—👩🏻‍💼Boardrooms to boarding gates! Gone are the days when you’d see only suits taking flights for business. In 2024, one in six business flyers in India was female, according to MakeMyTrip. This shift presents a multi-billion-dollar opportunity for airlines, hotels, and brands catering to working women, CNBC reported. India’s corporate travel market, valued at $10.8 billion in 2024, could hit $20.8 billion by 2030, with women accounting for $3.5 billion. Sectors leading female travel include education (28%), media (25%), and consulting (22%). Safety and convenience remain key priorities.

—💸 Tariffs, Oh Tariffs! White House Press Secretary Karoline Leavitt spoke about high Indian tariffs –150 percent tariff on American alcohol and a 100 percent tariff on agricultural products – in a White House press briefing on Tuesday, as per Moneycontrol. The other countries she mentioned were Japan and Canada. US President Trump has previously criticized India’s high tariffs, and New Delhi has agreed to reduce some duties following US pressure. Trump campaigned on the promise of instituting “reciprocal tariffs”, meaning he would charge countries tariffs equal to what they charge the US, because he believes that America isn’t getting a fair trade deal with its partners.

On Episode 530 of The Core Report, financial journalist Govindraj Ethiraj talks to Ketan Dalal, founder of Katalyst Advisors and former Managing Partner (West) and Joint Tax Leader of PwC India.

1. The stockmarkets struggle against headwinds

2. Inflows into Mutual Funds fall to 10-month low

3. Retail inflation down to 7-month low of 3.6%

4. What should India do on capital gains tax?

5. Does the US Commerce Secretary understand Commerce, asks the WSJ?

👥 THE TEAM

✍️ Zinal Dedhia, Salman SH | ✂️ Rohini Chatterji | 🎧 Joshua Thomas