On the eve of a competitor’s $106 billion IPO, Musk says: SpaceX (SPCX.US) Starlink must be affordable for Indians

Zhihu Finance APP has noted that Elon Musk has pledged to make SpaceX (SPCX.US)'s Starlink satellite internet service affordable in India, setting the stage for a potential price war with billionaire Mukesh Ambani's Reliance Jio—just days before the latter's parent company is set for what may become the largest IPO in India's history.

Jio Platforms, which owns India's leading telecom operator, is seeking a valuation of about $106 billion in this IPO. The offering comes as SpaceX and Reliance are vying for a share of India's emerging satellite broadband market, even though both companies are still awaiting final government security approval.

This competition could have significant implications for investors in both companies. Jio's dominance has been built on low-cost mobile data and aggressive customer acquisition, while Starlink's entry could bring yet another competitor to India's telecom market. The timing has also brought fresh scrutiny to Jio's growth prospects and potential competitive pressures, as investors assess its IPO valuation.

Musk Targets India's Low-Cost Internet Market

Musk acknowledges that in a country where the cost of mobile data is just about 8 cents per GB—among the lowest in the world—Starlink will have to adjust its pricing to compete.

On Saturday, Musk wrote on his social platform X, "Obviously if Starlink is too expensive in India, no one will buy it, so SpaceX needs to make pricing affordable." He added, "The reality is, competition will greatly benefit ordinary Indians because it gives them more choices, as competition always does. Ambani’s profits will fall, but he won’t go out of business because of this."

Musk did not disclose a specific subscription price or indicate when Starlink might begin commercial operations in India.

SpaceX has previously challenged established telecom operators in international markets, including Kenya, with competitive pricing. The company is also expanding its ambitions from satellite broadband to the mobile telecom sector, with plans to enter the US wireless operator market.

Regulatory Dispute

Before his comments on pricing, Musk had publicly criticized Ambani and Indian regulators several times, accusing them of protecting Reliance Jio from competition. This marks a shift from Musk’s previously amicable relationship with Indian Prime Minister Narendra Modi.

The Indian government has denied allegations of favoritism, insisting that all three satellite operators applying for commercial licenses—including Starlink and Jio's satellite business—must go through the same final security review.

Last Friday, Musk escalated the dispute, calling Ambani “Prime Minister Ambani” and asking whether he “would consider letting Starlink compete.” Reliance has not publicly responded to Musk’s latest allegations.

For investors, this dispute highlights the regulatory and competitive uncertainty surrounding India’s satellite internet market. Starlink’s eventual entry could expand broadband coverage and challenge existing operators, but its ability to compete with Jio’s low prices remains to be seen. Meanwhile, any prolonged regulatory delays could complicate SpaceX’s expansion plans and affect investor valuations of Jio’s satellite business ambitions ahead of its IPO.