The Indian government has opted to allocate satellite communication (satcom) spectrum administratively, rejecting the auction route favored by Reliance Jio and Bharti Airtel. This decision comes in the wake of opposition from Elon Musk, CEO of Starlink, who supports administrative allocation based on global norms. Musk, along with other satellite providers like Amazon’s Project Kuiper, argues that spectrum designated for satellite use is shared under the guidelines of the International Telecommunication Union (ITU) and should not be auctioned.
Musk vs. Ambani: Clash Over Spectrum Allocation
Musk, aiming to enter the Indian telecom market with Starlink, has criticized Mukesh Ambani’s push for a spectrum auction. In recent public comments, Musk called an auction “unprecedented” and questioned why satellite spectrum should be treated differently from global practices. Musk’s stance emphasizes providing internet services in India without the financial burden of an auction, which could potentially raise prices for consumers.
In contrast, Ambani’s Reliance Jio has been lobbying for an auction to ensure a level playing field. Jio argues that satellite service providers should undergo the same competitive bidding process as terrestrial telecom operators. Recently, Reliance Jio wrote to the Telecom Regulatory Authority of India (TRAI), urging them to reconsider their consultation paper that supports administrative allocation.
Telecom Giants Voice Support for Auction
Alongside Jio, Sunil Bharti Mittal, head of Bharti Airtel, has also voiced support for an auction. He emphasized that satellite companies offering services to urban markets should be subject to the same licensing rules as telecom operators, arguing that they too should “buy spectrum as telecom companies do.” Both Ambani and Mittal see an auction as essential to maintaining fair competition.
Telecom Minister Confirms Global Alignment
Despite these objections, India’s Telecom Minister Jyotiraditya Scindia confirmed that the country will adhere to the global practice of administrative spectrum allocation. “Satellite spectrum across the world is allocated administratively. So, India is not doing anything different,” he said. However, Scindia also emphasized that TRAI would be responsible for determining the pricing of the administratively allocated spectrum, ensuring that the system remains fair.
India’s Growing Satellite Broadband Market
The decision is seen as crucial as India’s satellite broadband market is expected to grow significantly, with projections estimating the market could reach USD 1.9 billion by 2030. The development of the satcom ecosystem is expected to play a vital role in expanding internet access across the country, especially in rural and remote areas. While the debate over spectrum allocation continues, the government’s decision aligns with the practices followed by many other countries, setting the stage for the next phase of satellite communications in India.
