(Reuters) -Elon Musk’s Starlink has signed a deal with India’s No. 2 telecoms company Airtel to bring Starlink’s internet services to the world’s most populous country, intensifying rivalry with fellow billionaire Mukesh Ambani’s telecom firm Reliance Jio.
The pact will allow the U.S. satellite internet giant to utilize Airtel’s retail store network to distribute its devices throughout India, and is conditional upon Starlink obtaining government approval to begin operations in the country.
Airtel said on Tuesday the companies will look at using each other’s network infrastructure to enhance coverage, but didn’t provide details. Airtel will also explore offering Starlink services to its business and other customers.
The Starlink announcement comes weeks after Indian Prime Minister Narendra Modi met with Elon Musk in Washington where they discussed issues including space, mobility, technology and innovation.
Starlink, which has long wanted to launch in India, has clashed recently with Ambani’s telecom firm Reliance Jio over how the country should grant spectrum for satellite services.
Reliance had urged an auction but the Indian government sided with Musk, who wanted it to be allocated administratively, in line with global trends. Analysts say an auction, requiring much more investment, would likely deter foreign rivals.
Ambani has been worried that his telecom company, which spent $19 billion in airwave auctions, risks losing broadband customers to Starlink and potentially even data and voice clients later.
Airtel has a similar distribution agreement with global satellite group Eutelsat, where its parent entity owns a stake.
Eutelsat’s OneWeb and Reliance Jio have already won approvals from India’s space regulator to launch commercial satellite broadband services in the country.
(Reporting by Indranil Sarkar, Kashish Tandon and Munsif Vengattil in Bengaluru; Editing by Shounak Dasgupta, Devika Syamnath and Bernadette Baum)
