IT Minister Ashwini Vaishnaw welcomes Starlink in India, backs network for ‘Useful remote area railway projects'

Union Minister for Railways, Communications, Electronics, and Information Technology, Ashwini Vaishnaw, has extended a warm welcome to SpaceX’s Starlink as it prepares to enter the Indian market.

Taking to social media platform X, Vaishnaw stated, “Starlink, welcome to India! Will be useful for remote area railway projects.”

His statement comes amid major developments in the Indian telecom sector, with both Jio Platforms Ltd. and Bharti Airtel Ltd. announcing surprise partnerships with SpaceX to integrate Starlink’s services.

These agreements signal a strategic shift for India’s two largest telecom providers, Mukesh Ambani-backed Jio and Sunil Mittal-controlled Bharti Airtel, which had previously resisted the entry of Starlink due to concerns over spectrum allocation. However, their new alliances suggest a recognition of Starlink’s role in India’s digital future.

While the partnerships are still subject to regulatory approval, the government’s positive stance, as reflected in Vaishnaw’s message, indicates a smoother path ahead for Starlink’s integration into India’s communications framework. The satellite service is expected to play a crucial role in enhancing railway connectivity, enabling better digital infrastructure, and supporting various government initiatives aimed at rural development.

Reliance Jio and Bharti are shifting their perspective on satellite broadband, now viewing it as a fundamental infrastructure component rather than a competitive threat, according to Utkarsh Sinha, Managing Director at Bexley Advisors. He noted that this strategy allows them to maintain their dominance over India’s internet growth, even as Starlink expands its presence.

Jio, India's largest telecom operator, will stock Starlink equipment in its retail stores, and thus provide Starlink a direct distribution point in thousands of its outlets across the country, Reuters reported. Starlink provides coverage to over 125 markets around the world.

Musk and Ambani had differed over how airwaves should be assigned for satellite internet, with New Delhi finally siding with the allocation approach the U.S. billionaire lobbied for. Jio's probable point of worry was that it had spent $19 billion in airwave auctions and risked losing broadband customers to Starlink and potentially data and voice clients as technology advances, Reuters reported.

Airtel, which also announced a partnership with Starlink, said the companies will look at using each other's network infrastructure to enhance coverage,  though it did not provide specifics. Airtel will also explore offering Starlink services to its business and other customers.

Under a newly established agreement, Reliance Jio will distribute Starlink equipment through both its physical retail outlets and online platforms, as stated in a company release on Wednesday. Additionally, the two firms plan to collaborate on enhancing their respective service offerings.

Industry insiders, speaking on condition of anonymity due to the confidential nature of the discussions, revealed that Indian telecom companies have secured marketing and distribution rights for Starlink. This move aims to cater to users in remote regions where traditional wireless networks provide inconsistent connectivity.

India's satellite service sector is set to grow 36% a year to $1.9 billion by 2030, according to Deloitte. Starlink has been awaiting  licenses for commercial operations in India since 2022, with no clear timeline yet on a decision. It has been delayed for reasons including national security concerns.

(With inputs from Bloomberg)