Elon Musk’s win on India satellite spectrum raises prospect of price war with Ambani

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Elon Musk’s win on India satellite spectrum raises prospect of price war with Ambani
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The Indian government has not set a timeframe for when the process will start, but Musk’s Starlink has already applied for necessary permits

Having just lost a battle with Elon Musk over how India ’s satellite spectrum is awarded, Asia’s richest man Mukesh Ambani could face a bigger challenge if Musk ’s Starlink launches services in India and the two go head-to-head on price.

Ambani, who runs India’s biggest telecom company, Reliance Jio, had tried since last year to seek a “balanced competitive landscape” and wanted to keep Musk at bay, as experts say a spectrum auction would have required much more investment and deterred foreign players. It has not set a timeframe for when the process will start but Musk’s Starlink has already applied for necessary permits. Starlink’s entry into the Indian market would create a new battleground between the two billionaires: pricing.

Ambani once gave data for free on his mobile plans, but Musk is no stranger to such tactics which can unsettle local players. Starlink has plans to offer an unlimited internet data plan in India initially and target corporate clients, said a second industry source familiar with the matter.With 42 million wired broadband internet users and 904 million telecom users on networks like 4G and 5G, India is the world’s second-biggest telecom market after China.

Starlink has also announced plans to launch globally a constellation of hundreds of satellites to enable “direct to cell” voice and data services in coming years.

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