Elon Musk vs Mukesh Ambani: There are rumors of a clash between one of the richest men in the world, Elon Musk and Reliance Industries chief Mukesh Ambani. Elon Musk is eager to establish business in a big country like India. But there is a possibility of direct confrontation between Musk and Reliance in some segments. Due to this, Mukesh Ambani’s Reliance Jio is opposing this plan.
What is Elon Musk’s plan?
Elon Musk, owner of Tesla and running his space agency, wants to bring his Starlink satellite broadband to India. But Asia’s richest man Mukesh Ambani has opposed it. Mukesh Ambani’s Reliance Jio is currently leading the broadband business in India. Elon Musk held a meeting with Prime Minister Narendra Modi in the US on Tuesday. After this they plan to launch Starlink satellite broadband in India. This broadband can be especially useful in thousands of villages in India where high speed internet is not available.
If Musk’s Starlink starts operating in India, it will compete with Reliance in sharing satellite broadband spectrum. India is now the most populous country in the world and companies are constantly trying to get satellite service market here. Starlink demands that the government should not auction the spectrum but allocate licenses according to the global market. Starlink says that spectrum is a natural resource and should be shared among all companies. If the spectrum is auctioned, there will be geographical restrictions which will increase the cost.
Reliance Industries does not agree with this and Reliance has demanded an auction. Reliance Jio says foreign satellite service providers can compete with existing telcos by offering voice and data services. Therefore, spectrum should be auctioned so that everyone gets the same area. Sources believe that Reliance will continue to urge the government to auction the spectrum.
This can make it difficult for Elon Musk to work in India. They also tried to launch Starlink in India in 2021, but the local regulatory issues got stuck. He is currently in talks with the authorities to set up a Tesla factory in India. According to an estimate, the satellite broadband service market in India could reach $1.9 billion by 2030.
