Starlink’s India breakthrough might be a bittersweet victory for Elon

Another win for Elon? Probably, but it's a rocky road ahead!

Back in 2021, Elon Musk tried to enter one of the largest markets on Earth – India – with his Starlink company. The company even started accepting pre-orders for its services (providing internet via special hardware for a monthly fee) and this was done prior to India's regulators giving it the green light.

Shortly after, Indian authorities were triggered by the bold move and immediately ordered Starlink to halt these operations and forced the company to refund early customer deposits.

Starlink, is now inching closer to a long-awaited launch in India after years of regulatory hurdles and pushback. In a surprising shift, Indian telecom giants Reliance Jio and Bharti Airtel have recently partnered with the SpaceX-owned company, signaling a major change in the landscape.

These alliances come after both companies initially opposed Starlink's entry, wary of competition from Musk's direct-to-consumer model. Now, they appear to see his service as a complementary asset rather than a rival, especially as India's digital ambitions grow. The breakthrough came in late 2024 when the Indian government opted for administrative spectrum allocation instead of auctions, significantly lowering entry barriers.



This change has opened the door for Starlink to join forces with local telecoms rather than fight them. While Jio and Airtel maintain partnerships with OneWeb and SES respectively, those companies primarily target enterprise clients.

Starlink, by contrast, focuses on households and underserved regions, offering services directly to consumers. This alignment of goals has led to what analysts call a business truce, with both sides recognizing mutual benefits in bridging the connectivity gap.

India's push for digital inclusion strengthens Starlink's position, a local report reads. With fixed broadband reaching only around 10 to 12% of households and mobile broadband still under 60%, the need for wider internet access is pressing. Starlink plans to target remote and rural areas where fiber rollout remains limited, offering an alternative where traditional infrastructure falls short.

Still, challenges persist. Starlink's monthly subscription typically costs around $50 – this isn't an easy to swallow sum when compared to local services like Jio's 5G AirFiber, which starts at $10. Add to this the hardware and installation fees, and this could further limit Starlink's early adoption. Regulatory barriers also remain, including short-term spectrum approvals, strict data localization laws, and scrutiny over foreign tech equipment.

Beyond Starlink, Musk's broader presence in India is complex. His companies, including Tesla, X and Grok AI all face their own regulatory and political challenges. As Starlink prepares for entry, its success will depend not only on strategic alliances, but also on Musk's ability to navigate India's shifting political and regulatory currents.