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| Cheap data or fast satellite networks: Which is better for India? | | | Mahendra Tiwari
The internet world in India is entering a new era. Until now, the mainstays of internet access in the country have been mobile towers, underground optical fibres, and telecommunications networks. However, technology that provides internet through satellites has opened up new possibilities. At the centre of this change are companies like Elon Musk’s SpaceX’s Starlink service and Mukesh Ambani’s Reliance Jio. The emerging competition between these two is not just a business battle between two industrialists, but also a crucial question concerning India’s future communications system, market rules, and digital self-reliance. Elon Musk’s Starlink provides internet access through satellites placed in low Earth orbit. Its special feature is that it does not require laying underground cables or installing mobile towers at each location. By installing appropriate equipment at the user’s location, internet can be connected via satellites. This system could be particularly useful in areas where mountains, dense forests, difficult geographical conditions, or scattered populations make it difficult and expensive to provide traditional communication networks.
The utility of this technology cannot be underestimated in a vast country like India. Improved internet access in villages, border settlements, islands, and remote forest areas in the Himalayan region can strengthen education, health, business, and administrative services. Satellite communications can also play a vital role during natural disasters. When floods, earthquakes, or cyclones damage roads and disrupt ground-based communications, satellite connectivity can be instrumental in relief and rescue operations. However, electricity, appropriate equipment, and the necessary technical infrastructure must be available. Discussion surrounding Starlink’s potential launch in India intensified when the company, despite receiving the necessary initial regulatory approvals, failed to complete the process of launching commercial services. Simply obtaining permission is not enough for a foreign satellite communications company in India. It must meet security requirements, technical standards, regulatory rules, and other prescribed requirements. National security and monitoring of communications systems are particularly important for services provided via satellite. Against this backdrop, the controversy between Elon Musk and Mukesh Ambani became a topic of discussion. In October 2026, Musk made sarcastic comments on the social media platform X regarding Ambani’s influence. He alleged that some influential businessmen in India wanted to limit competition in the satellite internet sector. He also targeted Ambani, questioning whether he was the real decision-maker in India. Musk’s comments reflected a complaint that his company was not getting the opportunity to launch its services in the Indian market at the required pace.
However, delays in obtaining permission for a company cannot be directly interpreted as evidence of pressure from another company or an attempt to monopolize it. This requires concrete evidence. The Indian government maintains that companies providing satellite communications services must comply with established regulations and security requirements. The government has also clarified that it is not in favour of giving special benefits to any one company. Companies like Starlink, Jio’s satellite communication service, and OneWeb must comply with relevant regulatory requirements. In this context, it is important to distinguish between allegations and proven facts to understand the controversy.
Zoho founder Sridhar Vembu’s comments are also noteworthy in this debate. He underscored the importance of affordable internet access and competition in the telecommunications sector. According to him, low mobile internet prices in India have significantly transformed the lives of ordinary citizens. Until a few years ago, regular internet access was expensive for many families. Today, students can study online, small businesses can reach their customers, and people in rural areas can access a variety of government and financial services.
Reliance Jio’s entry into the Indian telecom sector played a significant role in accelerating this transformation. Its plans, offering more data at lower prices, prompted other companies to reconsider their services and pricing strategies. This led to an increase in internet users and the expansion of digital services. Nevertheless, it would be unfair to give all the credit for the availability of affordable internet in India to a single company. Government digital initiatives, competition in the telecom sector, technological advancements, and the increasing availability of smart devices have also contributed to this.
The question now is how a service like Starlink will find its footing in the Indian market. Satellite internet’s greatest advantage is its geographical reach, but cost poses a significant challenge. Using traditional mobile internet typically doesn’t require the installation of dedicated satellite equipment. In contrast, satellite internet may require specialized equipment, and their cost, along with monthly fees, can impact users’ budgets. Therefore, technological superiority alone will not be sufficient for India’s vast consumer base. Service price, reliability, and actual usability will also be crucial.
In urban areas, where mobile networks and optical fibre-based internet are already available, satellite service may be difficult to achieve widespread adoption. In contrast, it may be more useful in remote areas, remote industrial installations, maritime activities, and disaster management. Thus, it would be more practical to view the two systems as complementary rather than complete substitutes. Mobile networks and underground communication systems can connect large populations at a lower cost, while satellite internet can expand access where other means are limited. The most complex aspect of this dispute is the allocation of spectrum required for the use of radio waves. Telecom companies like Jio and Airtel have been spending large sums of money in auctions to acquire spectrum for their networks. They argue that if satellite communications companies are provided spectrum through an administrative process, there should be clear rules and fees to ensure equal competition between both types of companies. On the other hand, satellite communications companies argue that the nature of their technology and services differs from traditional mobile networks, and therefore a uniform allocation system for both would not necessarily be fair.
This issue cannot be resolved simply by favouring one company. The government must formulate a transparent policy that takes into account technological differences, spectrum availability, fees, competition, and consumer interests. The justification of any system, whether auction or administrative allocation, should be determined by its rules, legal basis, and practical implications. The policy should encourage investment, reduce the possibility of unfair market advantage, and not create unnecessary obstacles to the development of new technologies.
National security is another important aspect of this entire issue. Any telecommunications company operating in India must comply with the country’s laws. It is the government’s responsibility to ensure citizens’ privacy, data security, availability of communications in emergency situations, and necessary legal support. Security issues related to foreign companies should be addressed through clear regulations and effective oversight. Furthermore, unnecessary barriers should not be erected in the name of security, which would hinder useful technology and healthy competition.
In reality, the challenge facing India is not to declare either Musk or Ambani the winner. The real objective is to create a digital environment in which Indian companies remain strong, opportunities for foreign investment and innovative technology are available, and the common citizen has access to better and affordable internet. If satellite internet expands education and healthcare services to remote villages, the entire country will benefit. If competition improves service quality and keeps prices reasonable, consumers will also benefit.
India’s digital journey is no longer limited to increasing internet speeds. It’s also about how the country balances its technological needs, economic interests, and national security. The emerging competition between Starlink and Jio is a test of this balance. The government must proceed with transparent regulations, fair decisions, and a long-term vision. Ultimately, success will lie not in the individual triumph of an industrialist, but in building a system that connects every citizen of India to digital opportunities.
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