India has chosen to allocate satellite communication spectrum through administrative means, following global practices. This decision comes after a public disagreement between Elon Musk’s Starlink and Mukesh Ambani’s Reliance Jio regarding the method of spectrum distribution.
Telecom Minister Jyotiraditya Scindia announced that the country will not auction satellite spectrum, a method preferred by Indian billionaires Mukesh Ambani and Sunil Bharti Mittal. Instead, India will take the administrative allocation route, in line with international standards. “Satellite spectrum around the world is allocated administratively. So, India is not doing anything different from the rest of the world,” Scindia explained.
Elon Musk Backs Administration Decision
Elon Musk, CEO of Starlink, has been vocal about his preference for administrative allocation. He argues that the International Telecommunication Union (ITU), a United Nations agency to which India belongs, designates satellite spectrum as shared resources that shouldn’t be auctioned. Responding to reports of Reliance Jio pushing for auctions, Musk remarked that such a move would be “unprecedented.”
I will call and ask if it would not be too much trouble to allow Starlink to compete to provide Internet services to the people of India.
— Elon Musk (@elonmusk) October 15, 2024
In a recent post, Musk took a subtle dig at Ambani, saying, “I will call and ask if it would not be too much trouble to allow Starlink to compete to provide internet services to the people of India.”
Reliance Jio Asks for Auctions
Mukesh Ambani’s Reliance Jio has been pushing for the auction of satellite spectrum to create what it describes as a “level playing field” for telecom operators. The company believes that satellite service providers should go through the same competitive bidding process as terrestrial telecom services.
Recently, Reliance Jio urged the Telecom Regulatory Authority of India (TRAI) to reconsider its consultation paper that favors administrative allocation. “We have requested TRAI to amend the consultation paper to ensure a level playing field,” Reliance Jio stated in a message to Reuters. The company emphasized that.
Sunil Mittal Aligns with Auction Preference
At a recent event, Sunil Bharti Mittal, the head of Bharti Airtel, expressed that satellite companies serving urban and retail markets should comply with the same licensing regulations as traditional telecom operators. “They must acquire the spectrum like telecom companies do,” Mittal emphasized, pointing out the necessity for uniform policies across the industry.
Government Ensures Fair Pricing
Minister Scindia assured that while the spectrum will be allocated administratively, the Telecom Regulatory Authority of India will set the pricing to ensure fairness. “The regulatory authority has been authorized to determine the administrative pricing,” he explained.
A Rapidly Growing Market
The satellite broadband market in India is set for considerable growth, with estimates suggesting it could reach USD 1.9 billion (approximately INR 157.76 billion) by 2030. This expanding market has attracted global players like Starlink and Amazon’s Project Kuiper, both of which support administrative allocation in accordance with international standards
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