Mukesh Ambani’s Reliance Industries has urged India’s telecommunications regulator to reconsider its decision to allocate satellite spectrum without an auction process, intensifying its rivalry with Elon Musk’s Starlink.
Last month, India’s Telecom Minister Jyotiraditya Scindia announced that the government intends to administratively allocate spectrum, aligning with global practices. However, a definitive announcement on the allocation process will be made following the feedback from the Telecom Regulatory Authority of India (TRAI).
Starlink, which has recently made inroads into the African market with substantial success, is keen on entering the Indian market. The company favors the government’s plan for spectrum allocation, which has led to concerns from local operators facing reduced broadband prices.
During a recent open house discussion hosted by TRAI, Ravi Gandhi, a senior policy executive at Reliance, criticized the move to allocate spectrum administratively, describing it as “the most discriminatory method of assigning any kind of government resource.”
In contrast, Parnil Urdhwareshe, an executive from Starlink India, heaped praise on the Indian allocation plan, branding it as “forward-looking.”
As the head of Reliance Jio, the largest telecom service provider in the country, Ambani is well aware of the challenges posed by foreign competition. Industry experts suggest that a spectrum auction would demand a greater financial commitment, likely discouraging international rivals.
The upcoming recommendations from TRAI in the next few weeks will be crucial in determining how satellite spectrum will be allocated in India.
Having invested $19 billion in airwave auctions, Reliance is wary of potential customer attrition to Starlink, particularly in broadband, data, and voice services as technology continues to evolve.
The allocation methodology for satellite services has sparked considerable debate between these two billionaire entrepreneurs.
Starlink, a division of SpaceX, operates approximately 6,400 satellites in orbit, catering to about 4 million customers with low-latency broadband.
While Ambani has previously offered complimentary data through his telecom plans, Musk has also employed similar pricing strategies in other markets.
For example, in Kenya, Starlink is priced at $10 per month, a stark contrast to the $120 monthly fee in the United States. Additionally, there are rental plans in place for customers facing higher hardware costs. Earlier this year, Kenya’s Safaricom raised concerns with local regulators, advocating for regulations that would require companies like Starlink to partner with existing mobile networks rather than operate independently.
© Thomson Reuters 2024
