Investing.com-- Reliance (NSE:RELI) Jio signed a deal with Elon Musk’s Starlink to provide satellite internet services in India, with the deal coming just a day after rival Bharti Airtel Ltd. (NSE:BRTI) announced a similar agreement.
Both deals will still need Starlink to obtain government approval to operate in India.
Jio’s agreement contrasts earlier calls from the telecom provider for Starlink to auction off its satellite spectrum in India- a move that was opposed by the government. Musk had also supported the government’s decision to allocate satellite spectrum administratively, in line with global trends.
Jio and Airtel are among the biggest telecom companies in India by market share, and are racing to embrace Starlink amid fears that it could undermine years of their investment in fiber and mobile telecommunication infrastructure.
Starlink’s potential foray into India also comes after a successful launch in Africa, where the satellite internet service was seen undermining local telecom operators.
But India has some of the cheapest broadband rates in the world, a trend that forces any new entrants to the Indian market to severely cut their rates in order to remain competitive.
Starlink currently charges about $120 a month in the U.S., which converts to about 10,470 rupees- well above the average monthly cost of broadband internet provided by Jio and Airtel.