Telco giant Airtel has announced a partnership with SpaceX to launch Starlink's high-speed satellite internet services in India, marking a significant development in the country's digital landscape. This move comes years after Elon Musk's company first expressed interest in entering the Indian market, the world's second-largest internet market after China.

However, it's essential to note that the deal is not a roll-out plan, and services are subject to SpaceX receiving regulatory clearance from IN-SPACe and the Department of Telecommunications to sell Starlink in the country. This caveat is crucial, given SpaceX's past experience in India. In 2022, the company had to refund preorders of equipment after the government called it out for "booking/rendering the satellite internet service" before getting the necessary licenses.

The regulatory hurdles are attributed to various reasons, including security and privacy issues, service pricing, and lobbying from local competitors. Notably, Airtel's partnership with SpaceX comes as a blow to billionaire Mukesh Ambani and his network Reliance Jio, which is the country's biggest telecom and has been looking to restrict Starlink's entry in the country while scouring to launch its satellite internet services.

SpaceX appears to be taking a more methodical approach this time, and today's development comes on the heels of a partnership signed between India and the U.S., where Prime Minister Narendra Modi and President Donald Trump committed to working more closely together. Given Musk's close involvement with the current U.S. administration, it will be interesting to see if those approvals finally start to materialize.

The financial terms of the deal were not disclosed, but plans include Airtel selling Starlink equipment through its retail stores, as well as Starlink services via Airtel to business customers. Additionally, SpaceX will explore how to "help expand and enhance" the Airtel network, and SpaceX will be able to tap into Airtel's national ground network infrastructure and other capabilities.

India, with over 1.4 billion people but only around 950 million internet subscribers, presents a tantalizing market for any company selling a different approach to connectivity. The Indian government has made several moves that could help line up Starlink's launch in the country. In late 2023, it passed a new telecom bill that would allow spectrum allocation for satellite services. In 2024, the Modi government backed Starlink in its satellite spectrum auction.

Interestingly, Airtel is also hedging bets, having a tie-up with Eutelsat OneWeb, whose subsidiary OneWeb India was one of the companies receiving approval to launch its satellite-based broadband services in late 2023. This move highlights Airtel's commitment to providing reliable and affordable broadband to its Indian customers, regardless of the partner.

According to Gopal Vittal, managing director and vice chairman, Bharti Airtel, "Starlink will complement and enhance Airtel's suite of products to ensure reliable and affordable broadband for our Indian customers – wherever they live and work." Gwynne Shotwell, president and chief operating officer of SpaceX, echoed this sentiment, stating, "We are excited to work with Airtel and unlock the transformative impact Starlink can bring to the people of India. We are constantly amazed by the incredible and inspiring things that people, businesses, and organizations do when they are connected via Starlink."

This partnership has significant implications for India's digital landscape, with the potential to bring high-speed internet to underserved areas and bridge the digital divide. As the regulatory process unfolds, it will be crucial to monitor the developments and their impact on the Indian market.