Elon Musk battles Mukesh Ambani over India’s satellite internet

But it is not Mr Ambani alone who supported the auction route.

Sunil Mittal, chairman of Bharti Airtel, has said that companies aiming to serve urban, high-end customers should “take telecom licences and buy spectrum like everyone else, external”.

Mr Mittal – India’s second-largest wireless operator – along with Mr Ambani, controls 80% of the country’s telecom market.

Such resistance is a “defensive move aimed at raising costs for international players seen as long-term threats,” says Mahesh Uppal, a telecommunications expert.

“While not immediate competition, satellite technologies are advancing quickly. Telecom companies [in India] with large terrestrial businesses fear that satellites could soon become more competitive, challenging their dominance.”

At stake, clearly, is the promise of the vast Indian market. Nearly 40% of India’s 1.4 billion people still don’t have internet access, with rural areas making up most of the cases, according to EY-Parthenon, a consulting company.

For context, China is home to almost 1.09 billion internet users, which is almost 340 million more than India’s 751 million, external, according to DataReportal, which tracks global online trends.

India’s internet adoption rate still lags behind the global average of 66.2% but recent studies show that the country is closing the gap.

If priced properly, satellite broadband can help bridge some of this gap, and even help in the internet-of things (IoT), a network that connects everyday objects to the internet, allowing them to talk to each other.

Pricing will be crucial in India, where mobile data is among the cheapest globally – just 12 cents per gigabyte, external, according to Modi.

“A price war [with Indian operators] is inevitable. Musk has deep pockets. There’s no reason why he cannot offer a year of free services in [some] places to gain a foothold in the domestic market,” says Prasanto K Roy, a technology analyst.

Starlink has already cut prices in Kenya and South Africa.