Elon Musk Accuses Mukesh Ambani of Blocking Starlink Launch in India

Image: TechCrunch · Source

Elon Musk criticizes Indian billionaire Mukesh Ambani, alleging he is obstructing Starlink's satellite internet launch in India amid regulatory delays and competition with Reliance Jio.

SpaceX’s efforts to launch its Starlink satellite internet service in India have stalled amid regulatory and competitive challenges, prompting Elon Musk to publicly accuse Indian billionaire Mukesh Ambani of blocking the project. Musk has intensified his criticism on the social media platform X, mocking Ambani by referring to him as India’s "prime minister," implying disproportionate influence over government decisions.

Musk asserts that Starlink could extend internet access to millions in unconnected areas, boost educational opportunities for children, and enable small businesses to reach a global customer base. However, he claims Ambani prefers to preserve Reliance Industries’ monopolistic position in Indian telecommunications, thereby obstructing Starlink’s market entry.

Ahead of Musk's recent statements, SpaceX had made efforts to enter the Indian market by partnering with Ambani’s Reliance Jio and Bharti Airtel, India's second-largest telecom operator, contingent on regulatory approvals. Despite securing key clearances, Starlink has yet to receive authorization to begin commercial operations.

India’s Ministry of Communications has denied allegations of favoritism, emphasizing that its satellite communications regulations are fair and comparable for all applicants undergoing security assessments, including Starlink and two other licensed satellite service providers. The ministry rejected suggestions that Starlink is being singled out for delays.

Meanwhile, Reliance Jio and Airtel are also pursuing satellite internet services. Jio has partnered with Luxembourg-based SES, and Airtel holds a significant stake in Eutelsat OneWeb, aiming to expand satellite connectivity in India.

India’s vast population and over one billion internet users represent a significant market opportunity for Musk but also pose challenges due to entrenched business interests such as Ambani's Reliance group, which maintains close ties to Prime Minister Narendra Modi's government.

Alongside Starlink’s delayed launch, Musk faces difficulties expanding Tesla's presence in India, with high import duties inflating vehicle prices. Tesla registered only 699 vehicles in its first year after launching in the country, reflecting market entry obstacles.

Earlier disputes included conflicting approaches over allocating satellite spectrum in India. Musk favored administrative assignment for Starlink, while Reliance Jio advocated for an auction. Ultimately, India chose an administrative allocation process.

India's telecom minister Jyotiraditya Scindia has publicly countered Musk’s accusations, affirming that India does not permit monopolies in any sector, suggesting the government seeks to maintain a balanced market environment. Starlink’s commercial start in India remains pending amid these contested regulatory and competitive dynamics.