Bharti Airtel has entered into a deal with Elon Musk’s SpaceX to launch Starlink’s satellite-based internet services in India. This is the first such deal in India, but its rollout depends on SpaceX obtaining regulatory clearances to offer Starlink commercially in India.
SpaceX has already applied for security clearance with the Indian government. But the proposal remains pending at the Ministry of Home Affairs.
Strategic Alliance to Extend Satellite Internet Services
Industry experts point out that Airtel’s partnership with SpaceX is a strategic initiative to increase consumer satellite services. While Airtel’s satellite service, OneWeb, is mainly for business customers, Starlink is designed for direct consumer use. This move increases the rivalry between Reliance Jio and SpaceX, particularly considering their past differences on spectrum allocation. While Jio has been in favor of an auction-based system, SpaceX has been advocating an administrative model of allocation. The Indian government has opted for the latter.
The agreement, as Airtel says, will enable the company to “explore how Starlink can complement and expand Airtel’s offerings, and how Airtel’s expertise in the Indian market complements SpaceX’s direct offerings to consumers and businesses.”
Broadening Internet Reach to Remote Locations
As per the deal, Airtel and SpaceX will also look into a number of different initiatives such as the sale of Starlink equipment in Airtel’s retail outlets, provision of Starlink services to business clients, and connecting rural India’s remote communities, schools, and healthcare facilities.
Airtel highlighted in a statement that “Airtel and SpaceX will also explore how Starlink could help expand and enhance the Airtel network, as well as SpaceX’s ability to utilise and benefit from Airtel’s ground network infrastructure and other capabilities in India.”
The alliance will help enhance country-level connectivity and fill the digital divide in rural areas with no or minimal internet coverage. “By adding Starlink, (in addition to its existing alliance with Eutelsat OneWeb) to its offerings, Airtel will further its ability to offer nationwide connectivity and connect previously underserved areas, particularly those with limited to no coverage today,” the company further stated.
Industry Leaders Respond to the Agreement
Bharti Airtel Managing Director and Vice Chairman Gopal Vittal welcomed the alliance as a significant milestone towards next-generation satellite connectivity. “Working with SpaceX to offer Starlink to Airtel customers in India is a significant milestone and further demonstrates our commitment to next-generation satellite connectivity.”
Gwynne Shotwell, President and Chief Operating Officer of SpaceX, echoed this sentiment. “The team at Airtel has played a pivotal role in India’s telecom story, so working with them to complement our direct offering makes great sense for our business.”
What This Means for India’s Internet Landscape
The Airtel-SpaceX alliance can be a game changer for India’s digital landscape, especially in rural areas where regular broadband services have not reached so far. Should SpaceX get its approvals, the alliance can potentially redefine high-speed internet connectivity for India, be it urban or rural consumers.
