Major Telecom Players Partner with SpaceX
India’s leading telecom giants, Reliance Jio and Bharti Airtel, have both announced partnerships with SpaceX to introduce Starlink’s high-speed satellite internet service in India. The back-to-back announcements, made on March 11 and March 12, have sparked investor interest in the prospects of both telecom stocks.
The agreements are expected to enhance Internet access, particularly in remote and rural areas where optical fiber deployment remains challenging. The move aligns with India’s broader digital expansion efforts, with both companies seeking to strengthen their foothold in the telecom sector through advanced satellite internet solutions. This development has intensified competition between the two firms, leaving investors to analyze which stock holds better growth potential following the deal.
Evaluating the Investment Potential
Industry experts have highlighted that while the partnership is a positive development for both Reliance Jio and Bharti Airtel, the greater beneficiary appears to be SpaceX. Ross Maxwell, Global Strategy Operations Lead at VT Markets, stated that the agreements open new opportunities to provide India’s dense rural populations with affordable internet access. He also noted that increased competition could drive pricing adjustments in a sector dominated by these two telecom giants.
Avinash Gorakshakar, head of research at Profitmart Securities, emphasized that SpaceX is not entering an exclusive partnership with either company. Instead, the collaboration offers Starlink access to a large, untapped market, benefiting consumers rather than significantly boosting domestic telecom players. The non-exclusive nature of the deal means both Airtel and Jio will have to differentiate themselves to maximize gains from this venture.
Growth Prospects for Airtel and Jio
Despite the competitive landscape, analysts remain optimistic about the growth trajectory of both companies. Prashanth Tapse, Senior VP of Research at Mehta Equities, believes the collaboration presents a strong growth opportunity for Jio, allowing it to expand its consumer base with faster, more reliable satellite-based internet. He also remains bullish on Bharti Airtel, highlighting its position as a pure telecom player operating in multiple global markets.
Tapse noted that while Jio’s performance is linked to Reliance’s broader business operations, Airtel maintains a focused approach in telecommunications. Airtel currently serves over 352 million customers in India and more than 210 million globally. Additionally, its possible expansion in the direct-to-home (DTH) segment could act as a key growth driver shortly.
As investors weigh their options, the ongoing competition between Airtel and Jio continues to shape the future of India’s telecom sector. With the introduction of satellite-based Internet services, both companies are poised to make significant strides in bridging the digital divide, though the ultimate market leader remains to be seen.
