Vodafone Idea refuted rumours circulating that it is in discussions with Elon Musk, the CEO of Tesla and SpaceX, about overseeing Starlink, an inexpensive satellite-based Internet service in India.
The telecom provider stated in an exchange filing, “We would like to submit that the company is not in any such discussion with the named party.” Following the clarification, the stock of Vodafone Idea fell more than 4% to Rs 16.20 on the Bombay Stock Exchange (BSE).
In September of last year, Vodafone Idea denied rumours that it was being looked at for a possible acquisition by Starlink, Amazon, or Verizon. The reports had been denied by Vodafone Idea in a regulatory filing. After passing the Lok Sabha, the Telecommunications Bill 2023 was approved by the Rajya Sabha last month by voice vote.
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The new bill allows spectrum allocation for satellite-based services without requiring participation in auctions, which benefits companies like Kuiper, an Amazon company, and Elon Musk’s Starlink. After numerous failed attempts in the past, Starlink is eager to launch satellite broadband services in the world’s largest country this year.
In the meantime, Vodafone Idea is prepared to invest heavily in 5G network deployment and additional 4G coverage expansion in India.Over the past year, the Vodafone Idea team has been working hard to get the core network ready for 5G.
However, Reliance Jio might soon receive the market access authorization and landing rights from the Indian National Space Promotion and Authorization Centre (IN-SPACe), which is crucial for the launch of gigabit fibre services based on satellites.
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Reports state that the business has made all required submissions and could receive approval shortly.
