Economy & Policy

Musk Calls Ambani India's 'Prime Minister' in Starlink Fight

Elon Musk called Mukesh Ambani India's 'prime minister' and accused him of blocking Starlink, as SpaceX's satellite service awaits security clearances in a market of over a billion internet users.

By Nathan Brooks

3 min read

Updated

What's News

  • Musk on Friday called Ambani India's 'prime minister' and accused him of blocking Starlink from competing.
  • Starlink has not received approval to begin commercial operations in India despite key regulatory clearances.
  • Tesla registered just 699 vehicles in its first 12 months of deliveries in India, according to data cited by Electrek.
  • India's communications ministry says Starlink and two other satellite operators are at 'broadly the same regulatory stage' pending security assessments.
  • India has over a billion internet users and is the world's most populous country.

Elon Musk has mockingly called Mukesh Ambani the country's "prime minister," intensifying his public campaign against the Reliance Industries chairperson as SpaceX struggles to launch Starlink in India.

Musk escalated the attack in a post on X on Friday, arguing that Starlink could bring internet access to unconnected areas, give children more opportunities to learn, and help small businesses reach customers worldwide. He then addressed Ambani directly.

"Naturally, you would prefer to maintain your monopolistic exploitation of the great people of India, but would you nonetheless consider allowing Starlink to compete?" Musk wrote.

Reliance Jio, Reliance Industries' telecom arm, did not immediately respond to a request for comment.

Why is Musk attacking Ambani now?

The Friday post followed a rapid escalation. Earlier in the week, Musk accused unnamed "oligarchs" of blocking Starlink's launch in India to protect their business interests. India's Ministry of Communications rejected the allegations, saying the country's regulatory framework for satellite communications is "fair and non-discretionary."

Musk went further on Thursday, questioning Ambani's influence in a separate X post: "Is Ambani the real boss of India?"

The conflict has a regulatory backstory. Starlink and Reliance Jio previously clashed over how India should allocate satellite spectrum. Musk's company wanted the spectrum assigned through an administrative process. Jio pushed for an auction. New Delhi sided with Starlink and decided to allocate the spectrum administratively.

What is holding up the launch?

SpaceX has spent years trying to enter the Indian market. Last year, it struck distribution agreements with Ambani's Reliance Jio and Bharti Airtel, India's second-largest telecom operator, to offer the service once it received approvals.

Starlink has still not received the go-ahead from New Delhi to begin commercial operations, despite securing key regulatory clearances.

In its Thursday statement, the Indian communication ministry said Starlink and two other licensed satellite operators are undergoing security assessments that must be completed before they can receive satellite spectrum. The ministry said all three are at "broadly the same regulatory stage," rejecting Musk's suggestion that Starlink was being singled out.

Jio and Airtel are racing to launch their own satellite internet services. Jio has a joint venture with Luxembourg-based SES. Airtel is a major shareholder in Eutelsat OneWeb, which is striving to offer satellite connectivity in the country.

How big is the stakes?

India, the world's most populous country with over a billion internet users, is a major market for Musk. Expanding there also means dealing with powerful business figures such as Ambani, whose Reliance conglomerate owns India's largest telecom operator and works with Prime Minister Narendra Modi's government on major projects.

Musk's struggles in India extend beyond satellite internet. Tesla launched in the country last year after years of anticipation and registered just 699 vehicles in its first 12 months of deliveries, according to data cited by Electrek. Steep import duties pushed the Model Y's launch price in India to nearly twice its U.S. price. Tesla cut prices earlier this year, but its cars remain considerably more expensive in India than in the U.S.

India's telecom minister Jyotiraditya Scindia pushed back against Musk's allegations on Friday, saying the country "does not allow a monopoly in any sector."

With the security assessments still pending and Musk trading public accusations with Ambani and the government, Starlink's commercial debut in the world's largest market by population has no firm date.

Original: x.com

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Nathan Brooks

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News editor covering marketplaces and e-commerce at Business Bearings.

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