The Zhitong Finance App notes that Elon Musk's promise to make SpaceX (SPCX.US) Starlink (Starlink) satellite internet service affordable in India, paving the way for a possible price war with Reliance Jio (Reliance Jio) under billionaire Mukesh Ambani — and just a few days later, its parent company is about to usher in what is probably the largest IPO in Indian history.
Jio Platforms owns India's leading telecom operator and is seeking a valuation of around $106 billion in this IPO. At the time of this launch, SpaceX and Reliance are vying for a place in India's emerging satellite broadband market, although both companies are still awaiting final security approval from the government.
The competition could have a significant impact on investors in both companies. Jio's leading position is built on low-cost mobile data and aggressive customer acquisition, and Starlink's entry could bring another competitor to the Indian telecom market. This point has also brought more attention to Jio's growth prospects and potential competitive pressure, and investors are evaluating its IPO valuation.
Musk targets India's low-cost internet market
Musk admits that in a country where the price of mobile data is only about 8 cents per GB, which is among the lowest in the world, Starlink needs to adjust pricing to compete.
Musk wrote on his social media platform X on Saturday, “Obviously, if Starlink is too expensive in India, no one will buy it, so SpaceX needs to make pricing affordable.” “The reality is that competition will greatly benefit ordinary Indian people because it gives them more choices, and competition has always been the case. “Ambani's profits will drop, but he won't go out of business because of it,” Musk added.
Musk did not disclose specific subscription prices, nor did he say when Starlink might start commercial operations in India.
SpaceX has previously challenged established telecom operators in international markets, including Kenya, with competitive pricing. The company is also expanding its ambitions from satellite broadband to mobile telecommunications, and plans to enter the US wireless carrier market.
Regulatory disputes
Prior to Musk's pricing remarks, he had repeatedly publicly criticized Ambani and Indian regulators, accusing them of protecting Reliance Jio from competition. These criticisms mark a shift in Musk's previous friendly relationship with Indian Prime Minister Narendra Modi.
The Indian government has denied accusations of bias, insisting that all three satellite operators applying for commercial licensing — including Starlink and Jio's satellite operations — are subject to the same final security review.
On Friday, Musk further escalated the dispute, calling Ambani “Prime Minister Ambani” and asking him if he “would consider putting Starlink in the competition.” The faithful side has yet to publicly respond to Musk's latest accusations.
For investors, the dispute highlights regulatory and competitive uncertainty surrounding India's satellite internet market. Starlink's eventual entry could expand broadband coverage and challenge existing operators, but its ability to compete with Jio's low prices has yet to be verified. At the same time, any lengthy regulatory delays could complicate SpaceX's expansion plans and affect investors' valuation of Jio's satellite business ambitions before its IPO.