Will our next internet connection come from space? Will rural India finally get high-speed internet? And will this disrupt the current telecom hierarchy? With Bharti Airtel teaming up with Elon Musk’s SpaceX to bring Starlink satellite internet to India, the battle lines in the telecom and digital space are being redrawn. What happens next will have far-reaching consequences—not just for the Indian consumers, but for business, geopolitics, and the digital economy itself.

For years, India’s telecom market has been defined by intense price wars, billionaire rivalries, and government regulations that have shaped its competitive landscape. Now, a new force is entering the arena. Starlink, with its low-earth orbit (LEO) satellite technology, promises to deliver highspeed, low-latency internet to even the most remote corners of India— places where traditional fibre and 5G networks struggle to reach. For Airtel, this partnership means gaining an edge over competitors by offering connectivity in areas where even Jio, India’s largest telecom player, is yet to establish its dominance.

The timing is crucial. Washington has long accused India of being a difficult market for foreign tech companies, with protectionist policies favouring domestic giants. The decision to allow Starlink access—without the spectrum auction that Indian telecom players like Jio had been pushing for—could be a diplomatic signal in a shift in India’s approach to global business partnerships. It could also strengthen Indo-US ties at a time when both nations are aligning their interests on trade, technology, and security. In geopolitical terms, this move is as much about diplomacy as it is about digital connectivity.

Starlink’s launch in India hinges on regulatory clearance from IN-SPACe and the Department of Telecommunications. SpaceX has already faced setbacks, including having to refund pre-orders in 2022 after rolling out services without a license. It still lacks full approvals due to security, privacy, and pricing concerns, along with resistance from local competitors lobbying to stall its entry. Even if existing market players use their regulatory and policy goodwill to slow or stall this deal, can the political system afford to upset President Trump’s current bestie—Musk? For the market leader Jio, this would be an unwelcome disruption, or even make it easier to craft a telecom-duopoly.

Jio’s digital empire has been built on aggressive expansion, large capital, cheap data, and pro-digital government policies. To their credit, Jio has reshaped India’s internet economy, forcing competitors like Vodafone Idea to the brink. But Starlink operates on an entirely different playing field. It does not rely on traditional telecom infrastructure, making it a potential game-changer for rural connectivity—an area where Jio has been investing heavily. If Starlink proves successful, Jio may be forced to accelerate its own satellite ambitions or risk losing ground in a market it has long dominated. Meanwhile, another question that should trouble the policy makers—where does this leave BSNL and Vodafone Idea (Vi)?

The state-run BSNL, struggling to stay relevant in the modern telecom landscape, is in the middle of a desperate effort to upgrade its 4G network. The company has set an ambitious goal to install 100,000 new mobile towers, with 65,000 4G towers already in place. Alongside these upgrades, the government is also pushing ahead with 5G deployment, considering foreign vendors for the network equipment, with a $2 billion bid planned for the necessary gear. But the larger question remains—should the government continue to pour money into BSNL, or is it time to exit a losing battle?

BSNL lacks scale, competitive pricing, and the technological edge to survive in this rapidly evolving market. The same applies to Vodafone Idea, a company that has been trying to regain its footing in a hypercompetitive industry. Just as Vi is attempting to catch up on 5G technology, expanding distribution, and strengthening its tower network, the arrival of satellite-based internet adds another layer of financial and strategic pressure. The company is already battling a fragile financial position, struggling with debt and spectrum payments.

Remember that the government is the single largest shareholder in Vi, after converting its debt into equity. Now, it faces the existential question of whether it can remain relevant in a market that is moving faster than it can adapt. The broader impact of this partnership will unfold in the coming years. If Starlink succeeds, it could transform India’s digital economy, unlocking opportunities for businesses, education, healthcare, and e-commerce in regions that have been digitally disconnected for decades. At the same time, it raises new questions.

Will satellite internet remain a niche service for premium users, or will it become mainstream enough to challenge traditional broadband providers? Will regulatory battles erupt over spectrum access and pricing? And most importantly, how will Indian telecom giants respond to this unexpected competition from the skies? And where will their funding come from? One thing is clear—India’s digital landscape is entering a new phase.

The battle for connectivity is no longer just about fibre, towers, and spectrum. With Starlink in the mix, the future of the internet in India could be written in the stars. But who would be the lucky one?

(The author is Corporate Advisor & Independent Director on Corporate Boards; X: @ssmumbai)