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Starlink, a satellite internet service from Musk's Starlink, and Reliance Satellite Internet Services of India sign a surprise deal

Mukesh Ambani’s Reliance Jio has signed a deal to bring Starlink satellite Internet services to India. This is a surprising move by the billionaires who had been at odds with each other for months about how India should allocate spectrum to them.

This deal comes on the heels of a similar announcement made by Starlink with India's No. 2 telecom player Bharti Airtel a day before.

Starlink will be available in the retail stores of Indian telecom operators, giving Starlink direct access to thousands of outlets in India.

The two deals are contingent upon Starlink receiving government approval for operations to begin in the country.

The agreements follow a meeting between Elon Musk and Indian Prime Minister Narendra Modi in Washington where they discussed space, mobility, innovation, technology, and other issues.

Deloitte predicts that India's satellite services sector will grow by 36% per year, to $1.9 billion in 2030.

The deal will make it easier for the government to approve Starlink's projects, said Chaitanya GRI, Space Fellow with Observer Research Foundation.

Starlink has waited for licenses in India to operate commercially since 2022, but there is no timeline on the decision. The decision has been postponed for a variety of reasons, including national security concerns.

The advantage of Starlink is its larger constellation. It also benefits from SpaceX’s high frequency of rocket launches, as well as the geopolitical weight due to the Trump-Musk partnership," Giri said.

A source familiar with the issue said that certain financial terms are tied to the pact, but refused to disclose any details.

The person said, "This is an entry-level model for Starlink" in India.

Jio is India's biggest telecom operator and will provide support for installation and activation of Starlink devices.

Reliance stated in a press release that Jio, and SpaceX were also evaluating additional areas of collaboration to leverage their respective Infrastructures.

MUSK AND INDIA

Musk is facing a high-stakes situation in India where he has recently been.

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A deal was made for the first Tesla showroom, which will sell imported electric cars.

Musk has repeatedly complained that the tariffs are among the highest in the world.

Neil Shah, cofounder of Counterpoint, said that while the move was surprising, Starlink's entry into the Indian market is a wise strategy. It's also a win for all parties involved, who were previously competing to get a piece of the pie, but are now working together and sharing.

The Indian space regulator has approved Jio Platforms' launch of commercial satellite broadband services. Jio Platforms already operates a joint venture satellite internet with Luxembourg-based SES.

Musk and Ambani's Reliance have clashed in the past over the method of awarding satellite spectrum to India.

Reliance wanted an auction, but the Indian Government sided with Musk who wanted to allocate it administratively in accordance with global trends.

Ambani lobbied New Delhi to ensure that there were no unfair advantages. His executives were worried that Starlink, a competitor to his telecom company which had spent $19 billion on airwave auctions could steal broadband customers and possibly data and voice clients with the advancement of technology.

(source: Reuters)