'India has lowest data prices, lowest cost payment systems': Zoho's Sridhar Vembu responds to Elon Musk

Zoho founder Sridhar Vembu responded to Elon Musk’s criticism of India’s regulatory framework for satellite internet services, citing the country’s low mobile data prices, affordable medicines and cheap digital payment systems to argue that competition has benefited consumers.

In a post on X Vemba, he defended Reliance Industries chairman Mukesh Ambani’s Jio role in reducing data prices, saying Prime Minister Narendra Modi’s government has encouraged competition and startup growth.

“These are the facts, Elon,” Vembu wrote in response to the Tesla and SpaceX CEO’s remarks about Starlink’s entry into India and alleged monopolistic practices.

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Vembu pointed to India’s low mobile data prices, affordable medicines and cheap UPI payments as evidence that competition benefits consumers. He also said that the government has encouraged competition and the growth of startups.

Vembu said the launch of Reliance Jio was directly responsible for the low data prices enjoyed by Indians. He cited the widespread use of dual-SIM phones and large data plans as signs that mobile data is becoming affordable.

Musk claimed that business interests were preventing Starlink from entering India and questioned the delay in its approval. He said Starlink has complied with Indian laws and requirements.

The Ministry of Communications called the allegations baseless and said India has a fair and non-discriminatory authorization framework for satellite services. She said safety assessments are underway for licensed operators.

The telecom license alone does not allow Starlink to start operations. Before starting commercial services, they must meet security conditions and obtain spectrum allocation.

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What did Sridhar Vembu say about Elon Musk’s Starlink claims?

Vembu claimed that India offers some of the lowest data prices in the world, pointing to the widespread use of dual-SIM smartphones and large mobile data plans.

“India has some of the lowest data prices in the world. It’s so good that I don’t even bother connecting to local Wifi when I travel around India and just strap my phone to work on my computer. Indians normally have dual sim phones with big data plans because they’re so affordable. Ambani’s launch of Jio is directly responsible for the low data prices that Indians enjoy.”

India has some of the lowest drug prices in the world (and still falling). People who visit India now buy medicines to take home on a fairly regular basis.

India has one of the cheapest payment systems in the world in UPI.

On the other hand, Tesla is protected from Chinese competition in the US market, keeping EV prices higher in America than elsewhere.

PM Modi has worked hard to create a competitive economy where the average Indian benefits. His government does not tolerate monopolies. It also actively encourages and supports the massive growth of startups, which is the best signal of a highly competitive economy.

Directly thanks to the Modi government’s policies, Indian startups are making great strides in low-cost rocketry, and this poses a threat to SpaceX, just as Chinese electric cars threaten Tesla.

These are the facts, Elon.”

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Vembu’s remarks came after Musk questioned whether Indian business interests were preventing Starlink from entering the satellite communications market there.

What did Elon Musk say about Starlink entering India?

In a post on X on Wednesday, Musk claimed that Starlink had been blocked in India by certain business interests.

“Unfortunately we are being blocked by certain oligarchs to maintain a monopoly on the people of India. You can guess who they are… This is a crime against the people of India!” wrote the tech mogul.

On Thursday, Musk again questioned the delay in Starlink getting a license to operate in India, saying the company had met the government’s requirements.

“Starlink is licensed in over 165 countries and has spent five years complying with every single law and requirement of the Indian government, so why still no license? Is Ambani the real boss of India?” he wrote

Musk subsequently attacked Mukesh Ambani again, sarcastically calling him India’s prime minister and questioning the role of business interests in Starlink’s entry into the country.

“Dear Prime Minister Ambani, please accept my humble apology for not realizing that you are the real boss of India,” the Tesla and SpaceX CEO wrote.

“Naturally you would prefer to keep your monopolistic exploitation of the big guys in India, but would you still consider allowing Starlink to compete?” he asked, adding, “In India, as in all countries, there are many areas without internet access, denying children the opportunity to get an education and small businesses the opportunity to sell their goods in the global market. Starlink would change their lives for the better.”

In his post on Friday, Musk also claimed that Starlink has helped save lives during natural disasters when other communication systems have failed. He said allowing the company to operate in India could similarly help save men, women and children across the country.

How did the center respond to Musk’s accusations?

The Department of Communications on Thursday morning denied the allegations, calling the claims baseless.

“A post is circulating on social media regarding the fairness of India’s regulatory framework for satellite communications services and suggests that it is being applied in a discriminatory manner. The government has put in place a fair and non-discriminatory authorization framework for all telecommunications services, including satellite communications services,” it said.

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The government also said that a security assessment required for satellite communications services is underway.

Which satellite internet companies have obtained telecom licenses in India?

Starlink, owned by SpaceX, is among three Global Mobile Personal Communication by Satellite services to which the center has granted telecommunications licenses.

The other two are Bharti-backed Eutelsat OneWeb and Jio Satellite Communications Ltd, a 100% subsidiary of Jio Platforms.

However, obtaining a telecommunications license alone does not allow companies to start offering services. They must also demonstrate compliance with security conditions before being allocated spectrum and starting commercial operations.

The center said a safety assessment, which is part of that process, is ongoing.

The dispute highlighted the regulatory approvals required for satellite Internet services in India, as well as competing claims regarding market access, consumer choice and competition in the telecommunications sector.