[#19] Tale of Chaos: Mukesh v.s Musk. Space. Satellite. Spectrum. Same arena, rules arenât. JioSpace Fiber & SpaceXâs Starlink are trekking towards Bharatâs stars; Whoâll Space this Odyssey?
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âMy desires are bounded by these mountains, and if they ever wander hence it is to contemplate the beauty of the heavens, steps by which the soul travels to its primeval abode.â
âThis is noble, righteous warfare, for it is wonderfully useful to God to have such an evil race wiped from the face of the earth.â
Don Quixote
Hello iKyu-riskers! Everyone loves a comeback story.
A story that has an underdog character. Who goes against all odds to fight and take what he âthinksâ he deserves.
And then we have the rest of the world. The world often talks with you in stories. And how do you respond back?
Metaphorically, they used to say: the one whoâs the richest â controls the world.
So want to respond back to the world. Simply respond to the richest.
Makes sense?
Hell nah!
Because these kind of elitist logic only finesses on movie sets. Where entire enigma is your script. Real life doesnât work on scripts. It works on transactions, trauma and trust. Deadly combination.
Because in the world full of transactions, trauma and trust â we are going to see a collision.
Collision of two worlds: Indiaâs Richest v.s Worldâs Richest.
Is it a fair fight? What kind of fight is this? Why are they fighting on the first place?
Well, you got to give them space. Thatâs their battle cry. Literally.
They want SPACE. Not to just rule the nocturnal species but beyond. These two richest are going for a head on collision to connect the world. Through India. Fascinating, isn't it?
Jioâs SpaceFiber and SpaceXâs Starlink is standing on an impasse. Whoâs going to take the first shot?
Jioâs discourse is tightening with its customers. While Musk fanboys are toiling to get a premium âmission-drivenâ narrative starlink connection to do whatâŠDroom-scroll?!
All for a satellite dominance on Indian soil space?
Letâs brutally breakdownđȘ in detail on whatâs this entire spectrum chase is all about and how these rich-lords are defining the future of India on todayâs Sunday edition of inK by iKyu.
But before we deep dive, letâs begin with India by iKyuâŠ
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THE (K)URRENT
JUG JUG JIOâŠ
JioStar Jiođ€Hotstar Merger Deal
The impending merger of JioCinema and Disney+ Hotstar is a seismic shift in India's OTT landscape. Reliance Industries Limited (RIL) aims to consolidate these platforms, creating a streaming behemoth that could dominate the market. With Disney+ Hotstar's 333 million users and JioCinema's rapid growth, this merger could yield over 125,000 hours of content, including coveted sports rights like the IPL, positioning it against giants like Netflix and Amazon Prime.
This strategic move not only streamlines operations but also addresses Disney+ Hotstar's declining subscriber base, which plummeted from 61 million to 35.5 million due to lost content rights. RIL's ability to attract massive viewership through the IPL on JioCinema underscores its potential.
However, the domain squatting incident involving JioHotstar.com raises eyebrows. The domain was registered just before the merger announcement, hinting at a calculated branding strategy or a defensive move against competitors. This reflects RIL's aggressive approach to securing its digital territory, ensuring that it remains a formidable player in the evolving OTT battleground.
I have predicted the name of the OTT Platform that would be after the Merger as âJioStarâ on October 23rd, 2024 (You heard it here first) on X.
Mukeshâs VIDYA, Jensenâs NVIDIA
The recent interaction between Mukesh Ambani and Jensen Huang at the NVIDIA AI Summit marked a pivotal moment for India's tech landscape. Their dialogue centered on the collaboration between NVIDIA and Reliance Industries, aimed at establishing robust AI infrastructure in India. Ambani's assertion that "India is ready to lead the world in AI" reflects a bold vision, while Huang emphasized the transformative potential of AI across industries. This partnership is set to leverage Reliance Jio's extensive network and data capabilities alongside NVIDIA's cutting-edge technology, positioning India as a global AI powerhouse. Huang's perspective on the Indian market is optimistic; he sees immense potential for innovation and growth, particularly in sectors like agriculture, healthcare, and education.
The purpose of this interaction was clear: to outline a roadmap for integrating AI into India's economic fabric, enhancing productivity and efficiency. Ambani's remarks about "empowering every Indian with technology" underscore a commitment to democratizing access to advanced tools.
The stakes are high. As both titans strategize their next moves, they must navigate challenges such as infrastructure readiness and regulatory hurdles. The synergy between Reliance and NVIDIA could redefine India's digital future, but it demands execution that matches ambition.
In essence, this meeting wasn't just a handshake; it was a declaration of intent to reshape the technological landscape of India.
THE (K)REMĂ
THE BIG BANG âSATCOMâ THEORYâŠ
âIn emptiness, there is no suffering.â
Nagarjuna
In the gleaming towers of Mumbai and the rocket labs of California, two titans prepared for a clash that could redefine not just the digital landscape of India, but the very fabric of its society.
On one side stood Mukesh Ambani, Indiaâs richest man, whose Reliance Jio had already disrupted the nationâs telecom sector with seismic force. On the other was Elon Musk, the worldâs richest man, whose SpaceX and its Starlink project aimed to envelop the globe in a network of satellites delivering high-speed internet to every inch of the planet.
This was not just a business rivalry; it was a high-stakes duel between ambition and innovation, between domestic might and global prowess. The battleground is Indiaâa market of 1.4 billion people, over half of whom were still awaiting reliable internet access. The prize? Nothing less than the digital future of the worldâs largest democracy.
Mukesh Ambaniâs Reliance Jio had already rewritten the rules of the game.
âOIL to JIOâ
In 2016, Jio entered the Indian telecom market with aggressive pricing strategies that offered data and voice services at fractions of existing costs. Within months, competitors were reeling. Since 2016 to date, Jio had amassed over 472 million subscribers, becoming the largest mobile network operator in India and the third-largest in the world.
But Ambani was not one to rest on his laurels. Recognizing that terrestrial infrastructure could only take connectivity so farâespecially in a country as vast and varied as Indiaâhe set his sights on the stars. In February 2022, reports emerged that Reliance was working on JioSpace Fiber, a satellite-based broadband service designed to bring high-speed internet to even the most remote regions of the country.
âData is the new oil,â Ambani had declared at a shareholdersâ meeting, his gaze steely with determination. âAnd we will ensure that every Indian has access to this vital resource, no matter where they are.â
On the other side of the world, Elon Musk was charting his own course to the cosmos. SpaceXâs Starlink project aimed to deploy a constellation of up to 42,000 low-earth orbit satellites, creating a mesh network capable of delivering high-speed internet anywhere on the planet.
INTERSTELLAR LOADââŠ
By November 2024, SpaceXâs has launched total of 7292 Starlink satellites, offering services in multiple countries and amassing over a million subscribers globally.
Elon Musk's Starlink is poised to enter the Indian market, having made strides to comply with local regulations. The company is currently seeking the necessary licenses to operate satellite broadband services in India, with a focus on adhering to government data localization rules that require all data to be stored within the country. This move aligns with India's regulatory framework and is expected to facilitate Starlink's launch soon.
Starlink's entry is anticipated to disrupt the existing telecom landscape dominated by giants like Reliance Jio and Bharti Airtel. With India having some of the lowest internet pricing globally, Starlink's competitive pricing strategy could pose a serious challenge to these established players. Jio currently leads the market with over 14 million wired broadband subscribers and nearly 500 million mobile internet users, while Airtel follows closely behind.
The competition is further intensified by Reliance Jio's lobbying for an auction-based approach to satellite spectrum allocation, contrasting with Starlink's preference for administrative allocation. Jio argues that an auction would ensure a level playing field, allowing traditional telecom services to compete fairly against satellite providers like Starlink.
Reliance Jio has already secured clearances to launch its own satellite broadband service but has yet to do so. The company is concerned about losing customers to Starlink as satellite technology advances and becomes more viable for urban markets. Mukesh Ambaniâs strategy historically included offering services at minimal costs to capture market share, a tactic that Musk may also employ given his previous low pricing in markets like Africa.
GENTLE IN THE NIGHT
India was a tantalizing market for Muskâa land where his vision of universal connectivity could find its most profound expression. In 2021, SpaceX began accepting pre-orders for Starlink in India, with plans to launch services by mid-2022. The response was immediate; tens of thousands of Indians signed up, hopeful that Starlink could bridge the digital divide that had long plagued the nation.
But the Indian government was not so easily swayed. Citing concerns over regulatory compliance and national security, the Department of Telecommunications issued a directive in November 2021, ordering SpaceX to stop booking pre-orders until the necessary licenses were obtained.
âIndia is not just another market,â an unnamed official was quoted as saying in The Economic Times. âWe have our own regulatory framework, and every companyâforeign or domesticâmust adhere to it.â
Musk, never one to back down from a challenge, took to Twitter in his characteristic fashion. âJust figuring out the regulatory approval process,â he quipped, his words tinged with both frustration and resolve.
Ambani watched these developments with keen interest. Reliance Jio had long mastered the art of navigating Indiaâs intricate regulatory landscape, leveraging relationships and an intimate understanding of the bureaucracy to its advantage. While Starlink grappled with red tape, JioSpace Fiber was quietly forging ahead.
By mid-2022, Jio had reportedly entered into partnerships with domestic satellite companies and was lobbying for favorable policies that could give it a competitive edge. Industry insiders whispered about high-level meetings between Reliance executives and government officials, discussions that could shape the future of Indiaâs satellite communications policy.
âAmbani plays chess while others are playing checkers,â remarked Sunil Gupta, a veteran telecom analyst. âHe understands that in India, business is as much about relationships and timing as it is about innovation.â
Meanwhile, the existing internet service providers watched with a mixture of dread and resignation. Companies like Bharti Airtel and Vodafone Idea were already reeling from Jioâs aggressive entry into the telecom market. The prospect of competing against both Jio and Starlink in the satellite internet space was akin to facing a storm without shelter.
For the average Indian consumer, the promises were intoxicating. High-speed internet without the constraints of ground infrastructure could revolutionize education, healthcare, commerce, and entertainment.
"PRICE IS POWER. POWER IS POWER!
But all of this is sheltered with one that Indians can be easily pushed away. The Price.
The value-for-money audience of India. Often waits for the affordable class to collapse as soon as the pricing is announced for these products and services and then they start smothering.
Beneath the surface of optimism surrounding Starlink's entry into India, significant questions remain about affordability and market impact. Currently, the cheapest monthly plan offered by Starlink is approximately âč4,200 (around $50), with a one-time equipment cost of about âč37,400. This pricing structure poses a challenge in a country where many consumers earn an average monthly income of around âč15,000.
In contrast, established players like Reliance Jio and Airtel offer much more competitive pricing for their broadband services. For instance, JioFiber plans start at âč399 per month, while Airtel Xstream Fiber plans begin at âč499 per month. Given that India is known for having some of the cheapest internet rates globally, Starlink's higher costs may deter potential customers, particularly in rural areas where the need for affordable connectivity is most acute.
Moreover, while Jio has been known for its disruptive pricing strategies, it remains to be seen how they will respond to Starlink's offerings. The entry of Starlink could force Jio to reassess its pricing models to maintain its competitive edge, but this raises concerns about sustainability and profitability in an already price-sensitive market.
Overall, while Starlink's advanced satellite technology promises high-speed internet access, especially in underserved regions, its initial pricing may limit its appeal unless adjustments are made to align more closely with local market expectations.
Then there were concerns about data privacy and sovereignty. Allowing a foreign entity like SpaceX to control a significant portion of Indiaâs communication infrastructure raised alarms among policymakers and security experts.
âWe are committed to bringing Starlink to India,â declared Gwynne Shotwell, President and COO of SpaceX, in a press release. âWe believe in the transformative power of connectivity and are eager to work with the government to make this vision a reality.â
The stage was set for a titanic struggleânot just between two corporations, but between two visions of the future. Ambaniâs approach was grounded, strategic, and deeply intertwined with Indiaâs socio-political fabric. Muskâs was audacious, disruptive, and global in its outlook.
But the complexities of the Indian market were unforgiving. Starlink faced delays in securing spectrum allocations, while JioSpace Fiber encountered technical challenges in integrating satellite and terrestrial networks. The race was becoming as much about endurance as it was about speed.
The economic implications were staggering. According to a report by the Internet and Mobile Association of India, increasing internet penetration by just 10% could boost GDP growth by 1.08%. With over 600 million Indians still offline, the potential for economic transformation was immense.
TL;DR
âThe satellite internet business is capital intensive with long payback periods,â noted Rakesh Kapoor, an investment analyst at Goldman Sachs. âBoth companies need to demonstrate not just technological feasibility but also a viable business model.â
Then came the geopolitical tremors. Tensions between the U.S. and China escalated, with ripple effects felt globally. India, navigating its own complex relationships, became more protective of its strategic assets. The government tightened regulations on foreign investments in sensitive sectors, adding another layer of complexity for SpaceX. Ambani, ever the strategist, capitalized on the moment. At the 2023 Reliance Annual General Meeting, he unveiled Jioâs vision for a âDigital India,â emphasizing self-reliance and national pride. âWe stand at the cusp of a new era,â he proclaimed, his voice resonating through the auditorium.
âAn era where India leads not just in consumption but in innovation, in setting the agenda for the world.â
The message was clear: Reliance was not just a business entity but a national champion, and any competition was not just against a company but against Indiaâs sovereign interests.
The (K)inK.
âInternet piK of the weekâ
A heartfelt message from Late Steven Paul Jobs.
EVENING THE ODDS
Beneath the spectacle of rockets and satellites, billionaires and boardrooms, lies an uncomfortable truthâa kink in the grand tapestry of progress. The race between JioSpace Fiber and Starlink is not merely a contest of technological prowess or market dominance; it is a mirror reflecting the deeper contradictions of our times.
On one side, we have Mukesh Ambani, whose empire is built as much on navigating the corridors of power as it is on business acumen. Relianceâs rise is entwined with a system that rewards proximity over merit, that blurs the lines between public interest and private gain. The aggressive push for JioSpace Fiber is as much about consolidating power as it is about connecting the unconnected.
On the other, we have Elon Musk, the archetype of Silicon Valleyâs messianic complexâbelieving that technology, wielded by the right hands, can solve any problem. Yet, this techno-utopianism often overlooks the messy realities of local contexts, cultures, and the unintended consequences of disruption.
The battle for satellite supremacy risks eclipsing the collaborative potential that could truly transform Indiaâs digital landscape. Instead of a zero-sum game, imagine a scenario where technology is democratized, where policies are crafted not to favor incumbents or gatekeepers but to foster innovation at all levels. In a world grappling with unprecedented wokeism, predictable population collapse, and the erosion of public trust, the pursuit of dominationâbe it in space or cyberspaceâfeels increasingly anachronistic. The real challenge is not who can conquer the skies, but who can ground their ambitions in empathy, ethics, and equity.
A reminder that progress is not a straight line drawn by the hands of the few, but a collective journey navigated by the many. Itâs a call to reimagine what connectivity meansânot just as a technical achievement, but as a shared human endeavour that bridges divides rather than deepening them.
As the satellites continue their silent dance across the night sky, the true measure of success will not be counted in megabits per second or market share percentages. It will be reflected in the lives transformed, the opportunities unlocked, and the futures reimagined.
In the end, the question is not how Indiaâs richest will stand against the worldâs richest, but how both can rise to the occasion and serve a greater good. Until then, the kink remainsâa flaw not in the stars, but in ourselves.
As a customer, I have sown my choice. What are you reaping?
