'India Has Lowest Data Prices, Lowest Cost Payment Systems': Zoho's Sridhar Vembu Responds To Elon Musk

(MENAFN- Live Mint) Zoho founder Sridhar Vembu has 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 low-cost digital payment systems to argue that competition has benefited consumers.

In a post on X, Vembu defended the role of Reliance Industries chairman Mukesh Ambani's Jio in bringing down data prices and said Prime Minister Narendra Modi's government had encouraged competition and the growth of startups.

"These are the facts Elon," Vembu wrote, responding to the Tesla and SpaceX CEO's remarks about Starlink's entry into India and alleged monopolistic practices.

Quick answers to key questions

.5 QUESTIONS1What did Zoho founder Sridhar Vembu say in response to Elon Musk's Starlink claims?⌵

Vembu pointed to India's low mobile data prices, affordable medicines and low-cost UPI payments as evidence that competition benefits consumers. He also said the government had encouraged competition and startup growth.

2How did Vembu say Jio helped lower data prices in India?⌵

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

3Why did Elon Musk accuse India of blocking Starlink?⌵

Musk alleged that business interests were preventing Starlink from entering India and questioned the delay in its approval. He said Starlink had complied with India's laws and requirements.

4How did the Indian government respond to Musk's claim that Starlink was being blocked?⌵

The Ministry of Communications called the allegation baseless, saying India has a fair, non-discriminatory authorisation framework for satellite services. It said security assessments for the licensed operators were underway.

5What must Starlink do before it can begin commercial services in India?⌵

A telecom licence alone does not allow Starlink to start operations. It must meet security conditions and obtain spectrum assignment before beginning commercial services.

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

"India has the among the lowest data prices in the world. It is so good that I don't even bother to connect to local Wifi when I travel in India and just tether my phone to work on my computer. Indians routinely have dual SIM phones with large data plans because they are so affordable. Ambani's launch of Jio is directly responsible for the low data prices Indians enjoy.

India has among the lowest drug prices in the world (and going lower still). People who visit India buy medicines to take home quite regularly now.

India has among the lowest cost 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.

Prime Minister Modi has worked hard to create a competitive economy where the benefits flow to the average Indian. His government does not tolerate monopolies. He has also actively promoted and encouraged a massive surge in startups and that is the best signal of a highly competitive economy.

Directly due to Modi government policy, Indian startups are making major advances in low cost rockets and that poses a threat to SpaceX the same say the Chinese EVs 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 country's satellite communications market.

What did Elon Musk say about Starlink's entry into India?

Musk, in a post on X on Wednesday, alleged that Starlink was being blocked in India by certain business interests.

"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!" the tech mogul wrote.

On Thursday, Musk again questioned the delay in Starlink receiving a licence to operate in India, claiming that the company had complied with 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 government of India, so why still no license? Is Ambani the real boss of India?" he wrote.

Musk subsequently took another swipe at Mukesh Ambani, sarcastically referring to him as India's prime minister while questioning the role of business interests in Starlink's entry into the country.

"Dear Prime Minister Ambani, please accept my humble apologies for not realising that you are the real boss of India," the Tesla and SpaceX CEO wrote.

"Naturally, you would prefer to maintain your monopolistic exploitation of the great people of India, but would you nonetheless consider allowing Starlink to compete?" he asked, adding,“There are many areas of India, as there are in all countries, with no Internet access, which denies children the opportunity for education and for small businesses the opportunity to sell their goods to a global market. Starlink would change their lives for the better.”

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

How did the Centre respond to Musk's allegations?

The Ministry of Communications rejected the allegations in a statement issued on Thursday morning, calling the claim baseless.

"A post is being circulated on social media regarding the fairness of India's regulatory framework for satellite communication services and suggesting that it is being applied in a discriminatory manner. The Government has put in place a fair and non-discriminatory authorisation framework for all telecommunication services, including satellite communication services," it said.

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The government also said the security assessment required for satellite communication services was underway.

Which satellite internet companies have received telecom licences in India?

Starlink, owned by SpaceX, is among three Global Mobile Personal Communication by Satellite services that have been granted telecom licences by the Centre.

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

However, receiving a telecom licence does not by itself allow the companies to begin offering services. They must also demonstrate compliance with security conditions before spectrum can be assigned and commercial operations can begin.

The Centre has said the security assessment, which forms part of this process, is underway.

The dispute has brought attention to the regulatory approvals required for satellite internet services in India, as well as competing claims over market access, consumer choice and competition in the telecommunications sector.

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