Musk, Ambani join hands in surprise Starlink internet deal

New Delhi: Mukesh Ambani's Reliance Jio signed a deal with Elon Musk's SpaceX to bring Starlink satellite internet services to India, a surprise move from the billionaires after being at odds for months over how the country should grant them spectrum.

India's largest telecom operator will stock Starlink equipment in its retail stores, giving Starlink a direct distribution point in thousands of such outlets across the country.

Musk and Ambani had fought intensely over how airwaves should be assigned for satellite internet, with New Delhi finally siding with the allocation approach the US billionaire lobbied for.

Ambani's Reliance had been concerned, opens new tab that Musk could dominate the telecom space once he launches his products, but the distribution deal will eventually see the Indian billionaire offering his rival's products in the fast-growing market, while also competing with them.

"While it has been surprising, it's a prudent strategy for Starlink to enter the India market and a win-win for all the parties involved earlier competing for the pie and now cooperating and sharing," said Neil Shah, co-founder of research firm Counterpoint.

The Reliance deal follows a similar partnership announcement between Starlink and India's No 2 telecom player Bharti Airtel opens new tab a day before. Both the Airtel and Jio deals are conditional upon Starlink obtaining government approval to begin operations in the country.

Airtel shares lost as much as 1% in Mumbai trade on Wednesday after the Jio deal was announced, while Reliance Industries opens new tab was trading marginally higher.

The agreements come weeks after Indian Prime Minister Narendra Modi met with Musk in Washington, where they discussed issues including space, mobility, technology and innovation.