Musk targets Ambani as Starlink's India launch stalls on security and FDI clearances

Smart AI Code2026-10-094 min read

Elon Musk has accused unnamed "oligarchs" of blocking Starlink's launch in India to preserve a "monopolistic chokehold" on Indian consumers, later singling out Reliance Industries chairman Mukesh Ambani in a post asking: "Is Ambani the real boss of India?"

India's Ministry of Communications rejected the suggestion of unfair treatment on October 8, saying its satellite communications framework is "fair and non-discriminatory" and that all three licensed operators are at "broadly the same regulatory stage."

The dispute underscores a material uncertainty that remains unresolved: Starlink has held a Global Mobile Personal Communication by Satellite (GMPCS) licence since June 2025 and IN-SPACe authorisation since July 2025, but still cannot launch commercial services in India.

What Musk said

In posts on X on October 7, Musk wrote: "Unfortunately, we are being blocked by certain oligarchs in order to maintain their monopolistic chokehold on the Indian people. You can guess who they are… This is a crime against the people of India!" He did not initially name any company or individual.

The following day he escalated, asking why Starlink still lacked a licence after being licensed in over 165 countries and spending five years complying with "every single law and requirement of the government of India," before questioning Ambani's influence.

Congress leader and Leader of Opposition Rahul Gandhi joined the exchange, posting: "Welcome to India, Elon. Wait till you discover the other guy." Musk replied: "Thank you, Rahul. This is indeed troubling."

How Delhi responded

The Department of Telecommunications said security assessments were currently underway for all three GMPCS licensees — Starlink, Bharti-backed Eutelsat OneWeb, and Jio Satellite Communications — and that each must demonstrate compliance with security conditions before seeking spectrum assignment.

"The suggestion that the framework or its application is unfair or discriminatory is baseless and misconceived," the ministry said in a statement reported by multiple outlets.

Reliance Jio chairman Akash Ambani declined to comment on Musk's remarks when asked at the India Mobile Congress, according to The Hindu. Bharti Airtel chairman Sunil Bharti Mittal noted that his own satellite venture, Eutelsat OneWeb, was also awaiting approvals.

Why Starlink is still waiting

Beyond the licence, Starlink needs security clearance, foreign direct investment approval, and a finalised spectrum allocation framework. Its FDI proposal was still pending as of October 8, according to Business Standard.

Security concerns centre on Starlink's network architecture. Its satellites can pass data between one another using inter-satellite laser links before traffic reaches a ground station, and Indian authorities have examined whether that could let Indian traffic bypass domestic gateways, complicating lawful interception, data localisation, and the ability to restrict services during emergencies.

At the India Mobile Congress on October 7, Starlink vice president of business operations Lauren Dreyer said the company had established 20 gateway sites with hundreds of antennas in India and built security controls specifically for the country. "We are standing ready to serve India once India is ready," she said.

A crowded, entangled market

Reliance Jio and Bharti Airtel together hold more than 80% of India's telecom and internet service market — the backdrop to Musk's claim of a "monopolistic chokehold."

The relationships are nonetheless entangled. SpaceX has announced distribution deals with both Jio and Airtel to roll out Starlink services in India, even as Jio partners with SES on satellite broadband and Airtel backs Eutelsat OneWeb, a rival licensed operator.

The two incumbents had also previously clashed with Starlink over spectrum. Starlink pushed for satellite spectrum to be assigned administratively, while Reliance Jio argued it should be auctioned — a route that would have raised Starlink's entry costs. India ultimately adopted the administrative allocation approach under the Telecommunications Act, 2023.

A proposed spectrum usage charge of 5% of adjusted gross revenue, with incentives for serving remote areas, was still awaiting Union Cabinet approval as of October 8.

What is confirmed, and what is not

Confirmed: Starlink holds its GMPCS licence and IN-SPACe authorisation, has built 20 gateway sites in India, and has distribution agreements with both Jio and Airtel. The Indian government says all three licensed satellite operators are undergoing security assessments at broadly the same stage.

Unknown: When the security assessment, FDI clearance, and final spectrum framework will be completed, and therefore when commercial Starlink services can launch in India. Musk offered no evidence for his claim that specific business interests were blocking the company's entry, and the government has formally rejected it.

Awaited: The Union Cabinet's decision on the spectrum usage charge, the outcome of the security assessments for all three licensees, and any response from Reliance Industries or Bharti Airtel to Musk's allegations.