Govt Listens To Elon Musk, Cancels Satellite Spectrum Auction


Mohul Ghosh

Mohul Ghosh

Oct 16, 2024


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.

Govt Listens To Elon Musk, Cancels Satellite Spectrum Auction

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.


Mohul Ghosh
Mohul Ghosh
  • 1668 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online