New Delhi: Tech trillionaire Elon Musk has said Starlink’s pricing in India would have to be made affordable, since no one would buy it if it were too expensive, and argued that competition would give consumers more choice.
Musk’s comments on X, part of a larger post, come as Jio Platforms, the digital arm of Reliance Industries, counts down to what is expected to be India’s biggest public offering.
“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 said.
Musk added: “And, obviously, if Starlink is too expensive in India, no one will buy it, so SpaceX will need to make pricing affordable.”
In the same post, Musk renewed his attack on Mukesh Ambani over Starlink’s entry into India, accusing the billionaire’s supporters of indulging in “absurd hypocrisy and hyperbole” in arguing simultaneously that his satellite internet service cannot compete with “amazing low prices offered by Ambani’s de facto monopoly in India”, and claiming – in the same breath – that it poses a strong competitive threat.
“On the one hand, they say Starlink couldn’t possibly compete with the amazing low prices offered by Ambani’s de facto monopoly in India and then, in the same breath, they essentially claim that Starlink would be too strong of a competitor! This is absurd hypocrisy and hyperbole,” Musk wrote, claiming that the “ridiculous arguments” by Ambani’s online supporters made no sense to him.
The latest post comes amid Musk’s scathing criticism of Ambani, over what he saw as a persistent delay in the launch of Starlink satellite broadband services in India.
Reliance has not publicly responded to Musk’s allegations, while the government has maintained that the country’s authorisation framework for telecom and satellite services is “fair and non-discriminatory” and that any suggestion that it was being applied selectively is “baseless and misconceived”.
At the India Mobile Congress this week, as Musk’s dramatic confrontation and swipes played out on X in the backdrop of India’s swanky annual showcase of its telecom prowess, Reliance Jio Infocomm Chairman Akash Ambani declined to comment on the ongoing debate over satellite communication services, saying the company was focused on delivering value to Indian consumers.
On Friday, Communications Minister Jyotiraditya Scindia asserted that India does not permit monopolies in any sector, and that despite the buzz around one particular company, three players – in fact – have received satcom licences and can start operations after meeting the security requirements and milestones.
Three entities – Musk’s Starlink, Reliance Jio’s satellite venture Jio Satcom, Bharti-backed Eutelsat OneWeb – have already secured licences, while Amazon’s Project Kuiper has expressed interest and will need to follow the established procedure.
Jio is building a satellite constellation of more than 1,600 low-Earth orbit satellites, supported by 23 ground stations. Starlink, operated by Musk’s SpaceX, has more than 11,000 satellites in its constellation.
Musk’s relentless attacks on Ambani come at a crucial time.
The initial public offering of Jio Platforms, which is expected to be the country’s biggest issue, is likely to open for subscription on October 21.
The market expects shares of the digital services major to be listed on the stock exchanges on October 28.
While the company has not formally announced the key dates yet, the mega issue – it is learnt – will open for subscription from October 21 to October 23 after completion of the anchor round on October 19.
At an estimated issue size of USD 3.8 billion, the Jio Platforms’ IPO is touted as India’s largest public offer.
The company has concluded overseas roadshows and is expected to file final papers with market regulator Sebi for the IPO in the week starting October 12.
The Securities and Exchange Board of India (Sebi) issued its final observations on August 28. Jio Platforms had filed its draft IPO papers in June.
According to its draft prospectus, the company plans to issue up to 27 crore fresh equity shares, equivalent to about 2.9 per cent of its post-issue equity base.
