After facing several regulatory obstacles, Elon Musk’s Starlink is on the brink of entering the Indian market, a move that could reshape the country’s digital landscape.

Government policy shift: The Indian government recently announced that satellite spectrum would be allocated administratively rather than through auction—a decision that benefits Starlink and other satellite providers like OneWeb. This policy shift overrides demands from local telecom giants, Reliance Jio and Bharti Airtel, who had lobbied for an auction-based system, arguing it would create a level playing field. However, the administrative allocation aligns with global norms, which Musk has publicly supported, allowing satellite providers to avoid the costs and complexities of an auction process.

Rural potential: Starlink’s interest in India is driven by the vast untapped potential of rural areas, where internet connectivity remains scarce. The company had attempted to enter the market in 2021 but was forced to refund customers after running afoul of local regulations. Now, with regulatory barriers easing, Starlink is set to officially launch, bringing its low-latency, high-speed broadband to underserved regions.

Rivalry escalates: The entry of Starlink into India also sets the stage for fierce competition with local players, particularly Reliance Jio, which has dominated the telecom sector. Starlink’s ability to offer competitively priced services could spark a price war, further intensifying the rivalry between Musk and Reliance’s Mukesh Ambani.

While this development is a win for Starlink, it will still face regulatory hurdles and competition in a market where affordability will be key. Nevertheless, Starlink’s arrival could significantly bridge India’s digital divide, providing millions with access to reliable internet for the first time.