Indian internet sphere is all set to embrace an intense face-off between the Satellite communication firms led by two of the world’s top billionaires – Elon Musk and Mukesh Ambani with both making their first moves to capture the yet-to-be-tapped digital market.
Mukesh Ambani led Jio Satellite Communications gets the necessary licensing
In a significant development in the sphere of Satellite Internet Services in India, Jio Satellite Communications has successfully managed to obtain the licenses to provide satellite internet services across India. The Jio Satellite arm is also owned by Mukesh Ambani, the chairman and managing director of Reliance Industries. Along with Eutelsat OneWeb, Jio’s arm has secured both the GMPCS (Global Mobile Personal Communication by Satellite) and ISP (Internet Service Provider) license.
Jio showcased the JioSpaceFiber during the India Mobile Congress (IMC) 2023. It is now ready to be poised to be among the first to roll out satellite internet services in India. It will initially focus on enterprises rather than individual customers.
Elon Musk picks pace
In another important development in this emerging digital sphere, the world’s richest man Elon Musk led Starlink’s application to provide satellite broadband services in India too has climbed the ladder in getting the license. As per reports, it has agreed to meet the Indian government’s data localisation and security requirements which is a key factor for gaining a Global Mobile Personal Communication by Satellite (GMPCS) license.
Compliance with these security guidelines, including data storage within India and allowing intelligence agency access if needed, marks a critical step for Starlink’s entry. In recent meetings with the Department of Telecommunications (DoT), Starlink reached an “in principle” agreement to adhere to these conditions, although the formal documentation is pending.
Starlink is already operational in 36 countries which includes countries like the U.S., Canada, and Australia. Also, because of Donald Trump coming to power in the United States to whom Elon Musk gave active support, it is predicted to give more leverage for its planned satellite internet operations in India. It is predicted that Elon Musk’s satellite adventure in India won’t have to undergo much trouble in India in order to get access to the license.
With Jio Satellite Communications and Starlink both vying to launch satellite internet services in India, the future could see a business rivalry between India’s richest man, Mukesh Ambani, and the world’s wealthiest, Elon Musk. On one side, Indian giants like Jio Satellite support auction-based spectrum allocation, especially for urban areas, to ensure a fair playing field. Starlink, however, argues for administrative allocation, emphasizing that satellite and telecom services operate differently.
Also Read: Elon Musk-Mukesh Ambani battle to spark a new life in Indian Internet market
In October, this year, Elon Musk and Mukesh Ambani recently found themselves at odds over the same reason for the spectrum allocation method. For satellite communications (satcom), most countries use an administrative allocation method by contrast to the allocation of mobile internet which is done through auction which Jio, led by Ambani, suggested that the government should adopt an auction-based approach. This led Elon Musk to react on Twitter and bid against the proposal. Later, Jyotiraditya Scindia, the Union Telecom Minister cleared the air and categorically stated that the Indian government does not favor the auction method for satellite communications.
