On Tuesday, the Indian government announced its decision to allocate spectrum for satellite broadband services through administrative means rather than an auction. This announcement followed Elon Musk’s criticism of the auction proposal backed by rival billionaire Mukesh Ambani, whom Musk described as pursuing an “unprecedented” approach.
The debate over how to award spectrum for satellite services in India has escalated into a high-profile contest between billionaires, with the market projected to grow by 36% annually, reaching an estimated $1.9 billion by 2030.
Musk’s company, Starlink, contends that an administrative allocation aligns with global practices, while Reliance, led by Ambani, argues that an auction would foster a fair competitive environment, especially given the absence of clear legal provisions in India for individual satellite broadband offerings.
During an event in New Delhi, Telecoms Minister Jyotiraditya Scindia stated that the spectrum would be distributed in accordance with Indian laws, with pricing determined by the telecommunications regulatory authority.
“Opting for an auction would place us on a path distinct from the rest of the world,” Scindia remarked.
Musk expressed approval of the government’s decision via a post on the social media platform X, stating, “We will do our best to serve the people of India with Starlink.”
On Sunday, a Reuters report revealed that Reliance had contested the Indian telecom regulator’s consultation process, which indicated that home satellite broadband spectrum would be allocated rather than auctioned. Reliance requested that the process be reopened.
The minister’s announcement is likely to bolster Musk, who had previously taken to X to express that any auction decision would be “unprecedented.”
Musk clarified that the spectrum in question has long been designated by the International Telecommunication Union (ITU) as shared satellite spectrum. The ITU is a United Nations agency that manages global telecommunications.
As a member of the ITU and a signatory to its treaty, India supports the rationale that spectrum allocation should be conducted “rationally, efficiently, and economically,” given its status as a “limited natural resource.”
Sunil Mittal, co-chair of the global satellite organization Eutelsat and chairman of India’s telecom operator Bharti Airtel, expressed approval for an auction route at the same event. He affirmed, “Satellite companies looking to serve urban areas and elite retail customers need to acquire telecom licenses and purchase spectrum like any other telecom firm.”
Earlier in 2023, both Eutelsat unit OneWeb and Airtel had raised concerns regarding the auction of satellite spectrum in their submissions to the Indian government.
Meanwhile, Musk’s Starlink and other global initiatives, such as Amazon’s Project Kuiper, continue to advocate for an administrative allocation, emphasizing that spectrum is a natural resource that should be collaboratively utilized by various companies.
© Thomson Reuters 2024
