Musk says competition will lower Ambani's profits days before Jio's $106 billion IPO
Elon Musk said Starlink will be priced affordably in India, days before Jio Platforms' IPO at a $106 billion valuation target.
The Investor · Invest desk
Jio and Bharti Airtel together serve approximately 910 million broadband subscribers, per the latest government data. Mobile data in India costs about 8 cents per gigabyte. SpaceX says it spent five years navigating India's regulatory process.
| Figure | Value | Note | Claim |
|---|---|---|---|
| Broadband subscribers served by Jio and Airtel, approx. | 910 million | 7 | |
| India mobile data, about | 8 cents/gigabyte | 6 | |
| SpaceX says it spent on India's regulatory process | 5 years | SpaceX VP Lauren Dreyer, last week | 12 |
What happened
- Late on Friday, Musk addressed Ambani as "Prime Minister Ambani" and asked whether he would "consider allowing Starlink to compete".
- Musk has accused Modi's government and Ambani of stalling Starlink's entry into India to protect Jio's dominant market position.
- Starlink holds a satellite communications license in India but still awaits security clearances and spectrum allocation before it can start commercial service.
- Jio Infocomm and Bharti Airtel together serve about 910 million broadband subscribers, more than 80% of India's market, according to the latest government data.
Why it matters
- What it limits constraint Until Starlink has clearance and spectrum it cannot put a price list or a customer on a plan, so the pledge cannot be checked against subscriber data before Jio lists.
- What doesn't add up contradiction On Musk's account the wait protects Reliance. On the government's account Jio's own satellite venture is stuck in the same queue. An IPO buyer cannot tell which is true from either side's statements.
- Who has to decide decision Investors must decide how much of an unpriced rival to discount in a $106 billion valuation now, or wait for a clearance event that gives them a number to model.
- What it sets up precedent Musk is applying in India the low-price approach that built Jio and that he used in Kenya, and SpaceX's plan to sell mobile service in the US shows the product it brings to such fights can widen.
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Musk's pledge is conditional. "Obviously, if Starlink is too expensive in India, no one will buy it, so SpaceX will need to make pricing affordable," he posted on X on Saturday [2]. He did not specify prices [4]. The yardstick for any price he names is mobile data at about 8 cents per gigabyte, among the cheapest rates anywhere [6].
Musk added a line that goes to the valuation: "Ambani's profits will be lower, but he is not going out of business" [3]. On his own telling, the cost to Jio is lower profit. That profit sits on a large base: if 910 million subscribers is just over 80% of the market, the whole market is at most 1,137.5 million, and every other provider combined serves at most about 227.5 million [13][14].
We think the pledge changes how the listing is discussed well before it changes what Jio charges. Pricing power is tested by a rival with subscribers. Starlink is not yet selling service in India. The counter-thesis is that entry is a question of timing, and a buyer who values Jio on a share above 80% has to put some value on a future rival now, before any clearance arrives. A third outcome is that Reliance sells satellite service before Starlink does, since Jio's own venture is waiting on the same final security clearance [9]. Starlink would then be entering against a Jio that already sells from satellites.
We would be wrong if Starlink publishes an India price that Jio has to answer, or if Starlink is cleared ahead of Jio's venture.
Reliance did not respond to Reuters' requests for comment [16]. Speaking at an industry conference in New Delhi last week, SpaceX Vice President Lauren Dreyer said the company had been working through India's regulatory process for five years [12]. Five years into that process, the Saturday post is the only pricing commitment in either report.
What to watch
- Whether India clears Starlink for security and allocates spectrum before or after Jio's own satellite venture.
- Whether Starlink publishes an India price, and how it compares with mobile data at about 8 cents per gigabyte.
- Whether Reliance answers Musk on the record once the Jio offering launches.
Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence62
- Adoption5
- Hype gap+35
- Incentives70
- Confidence68
Perspective Coverage
3 publishers- Builder
- Builder 7%
- Operator
- Operator 42%
- Investor
- Investor 51%
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
Elon Musk said SpaceX would price its Starlink satellite internet service to be affordable in India, days before Jio Platforms launches the country's largest-ever initial public offering.
- [2]
"Obviously, if Starlink is too expensive in India, no one will buy it, so SpaceX will need to make pricing affordable," Musk posted on X on Saturday.
- [3]
"Ambani's profits will be lower, but he is not going out of business," Musk added.
- [4]
Musk did not specify prices for India.
- [5]
Jio Platforms, the holding company for Reliance's telecom business, has set a $106 billion valuation target for the upcoming share sale, which would be India's largest-ever IPO.
- [6]
Mobile data in India costs about 8 cents per gigabyte, among the lowest rates in the world.
- [7]
Reliance Jio Infocomm and Bharti Airtel together serve approximately 910 million broadband subscribers, a share exceeding 80% of India's total market, according to the latest government data.
- [8]
Starlink has received a satellite communications license in India but is still awaiting security clearances and spectrum allocation before it can begin commercial operations.
- [9]
Jio's own satellite venture is also awaiting final security clearance to launch.
- [10]
Aggressive low-cost data plans were central to Jio's rise to dominance in India, and Musk has drawn on the same approach in markets such as Kenya to challenge incumbent carriers.
- [11]
SpaceX now plans to enter the mobile carrier market itself, starting in the US.
- [12]
SpaceX Vice President Lauren Dreyer told an industry conference in New Delhi last week that the company had spent five years navigating India's regulatory process.
- [13]
If 910 million subscribers is a share exceeding 80%, India's total broadband market is at most about 1,137.5 million subscribers.
- [14]
Providers other than Jio and Airtel serve at most about 227.5 million broadband subscribers.
- [15]
India's government has denied any bias in its approval process, noting that the three satellite ventures seeking to launch, including Starlink's and Jio's, are all awaiting final security clearance.
- [16]
Reliance did not respond to Reuters' requests for comment on Musk's remarks.
- [17]
Late on Friday, Musk addressed Ambani as "Prime Minister Ambani" and asked whether he would "consider allowing Starlink to compete".
- [18]
Musk has accused Prime Minister Narendra Modi's government and Ambani of stalling Starlink's entry into India to protect Jio's dominant market position.
Sources
2 independent publishers whose own reporting we read for this story.
- channelnewsasia.comMusk vows affordable Starlink in India days before Ambani's record Jio IPO
1 article · October 11, 2026
- qz.comMusk vows affordable Starlink pricing in India ahead of Jio IPO
1 article · October 12, 2026
- techrepublic.comMusk Pledges Affordable Starlink in India Ahead of Jio Platforms IPO
1 article · October 13, 2026