Key insights
- Elon Musk has vowed to offer affordable Starlink satellite internet in India, directly challenging Mukesh Ambani's Reliance Jio ahead of Jio's parent company's IPO. Musk accused the Indian government and Ambani of delaying Starlink's market entry to favor Jio. While Jio awaits security clearance for its own satellite venture, Musk emphasized that competition would benefit Indian consumers, potentially lowering Ambani's profits but not threatening his business.
By Munsif Vengattil
BENGALURU, Oct 11 (Reuters) - Elon Musk said he would price Starlink’s satellite internet service affordably in India to take on Mukesh Ambani’s low-cost Reliance Jio, escalating his attacks on the rival billionaire days before Jio’s parent launches India’s largest-ever IPO.
Jio Platforms, which owns the telecom arm, is targeting a valuation of $106 billion in the offering. Much like SpaceX-owned Starlink, Jio’s own satellite venture is also awaiting final security clearance to launch.
Cheap data is the playbook that built Jio in India, and the one Musk has used in markets like Kenya to unsettle local telecom players. SpaceX now plans to enter the mobile carrier market itself, starting in the US.
Musk did not specify prices for India, where mobile data costs about 8 cents per gigabyte, among the lowest in the world.
"Obviously, if Starlink is too expensive in India, no one will buy it, so SpaceX will need to make pricing affordable," he said in a post on his social media platform X on Saturday.
"The reality is that competition would greatly benefit the average citizen in India by giving them more choices, as it always does. Ambani’s profits will be lower, but he is not going out of business," Musk added.
’PRIME MINISTER AMBANI’
The billionaire’s remarks were the latest in a series of X posts where he accused Prime Minister Narendra Modi’s government and Ambani of stalling Starlink’s entry into one of the world’s biggest internet markets to favour market leader Jio.
The posts have marked a sharp turn for Musk, who has long enjoyed a warm public rapport with Modi.
India’s government has denied any bias in its approval process, noting that the three satellite ventures seeking to launch, including Starlink’s and Jio’s, are all awaiting final security clearance.
Late on Friday, Musk taunted Ambani directly, addressing him as "Prime Minister Ambani" and asking whether he would "consider allowing Starlink to compete".
Reliance has not responded to requests for comment on Musk’s remarks.
The fastest way to find out is with our Fair Value calculator. We use a mix of 17 proven industry valuation models for maximum accuracy. Get the bottom line for SPCX plus thousands of other stocks and find your next hidden gem with massive upside.