Musk accuses Indian tycoons of blocking starlink expansion
Elon Musk has accused powerful Indian business interests of obstructing Starlink’s entry into the country, but government licensing requirements and concerns over control of internet access remain major hurdles for the satellite internet service.
Musk, the world’s richest man, claimed on his social media platform that Starlink was being blocked by “certain oligarchs” to protect their dominance in India’s telecommunications market.
He specifically pointed to Mukesh Ambani, owner of Jio, the country’s largest mobile network.
Jio is developing its own low-Earth-orbit satellite system that could compete with Starlink.
However, Jio and rival telecom operator Bharti Airtel have also partnered with Starlink, and all three companies are awaiting government approval to proceed.
The dispute intensified last week during the India Mobile Congress in New Delhi, where Jio promoted its planned satellite network as part of its broadband strategy.
Musk criticised the delay in approving Starlink’s operations, arguing that the service could have improved internet access for millions of Indians, particularly those living in remote areas.
India’s Communications Ministry rejected his allegations as “baseless and misconceived”, saying an official review was underway and Starlink and its domestic competitors were at broadly the same regulatory stage.
Security concerns and limited market potential
India’s government has cited security requirements as a key reason for the lengthy licensing process. Satellite communications can provide connectivity in areas beyond the reach of conventional mobile networks, but authorities remain concerned about dependence on foreign operators for critical communications.
The war in Ukraine has highlighted the strategic importance of satellite internet, as well as the risks associated with relying on a privately controlled foreign network.
Musk has previously intervened in Starlink access, affecting Russian and Ukrainian operations.
Despite the dispute, analysts say satellite internet is likely to remain a niche market in India, where mobile networks provide around 95% of internet access and data services are among the cheapest globally.
Neil Shah, co-founder of Mumbai-based Counterpoint Research, estimates that the country’s satellite internet market could be worth up to $2 billion, shared among Jio, Airtel and potentially Starlink.
Satellite services could prove particularly useful in remote Himalayan regions, distant islands, aircraft, ships and during natural disasters.
However, their relatively high costs may limit adoption among ordinary consumers.
Internet restrictions raise wider concerns
The dispute has also drawn attention to India’s restrictions on internet access during protests and periods of unrest.
Ahead of a recent demonstration in New Delhi over voter list revisions, police reportedly suspended mobile data services within a 2.5-mile radius of the protest area.
Digital rights advocates have criticised such shutdowns, arguing that they restrict communication for protesters, journalists and the public.
India has frequently imposed internet restrictions, ranking among the countries with the highest number of shutdowns, according to digital rights organisation Access Now.
The controversy highlights the challenges facing Starlink as it seeks approval to enter India, where commercial competition, government security requirements and restrictions on internet access intersect.