A consortium of India’s leading telecom operators, Reliance Jio and Bharti Airtel, has expressed concerns that their operations may be jeopardized by the Indian government potentially pricing satellite spectrum at rates deemed “unjustifiably low.” This pricing strategy could benefit satellite internet providers such as Starlink, owned by Elon Musk.
In May, India’s telecommunications regulator suggested that satellite service companies should remit four percent of their annual revenue to the government for providing services. Starlink has advocated against an auction for the spectrum, suggesting that it should be allocated through license assignments, aligning with a broader global approach of treating spectrum as a shared resource among companies.
In a letter dated May 29 to the telecoms ministry, the Cellular Operators Association of India called for a reevaluation of the proposed pricing framework, noting that traditional telecom operators incur significantly higher upfront costs in spectrum auctions. The letter claimed that these payments to the government are approximately 21 percent greater than what satellite providers would contribute.
“The price per MHz should be equivalent or at least comparable for both types of service providers, particularly since they serve the same consumer base with similar offerings,” the letter stated, as reported by Reuters.
The letter further pointed out, “Satellite services can provide competitive and affordable alternatives to terrestrial broadband.”
Reliance Jio, headed by Asia’s richest individual Mukesh Ambani, and Airtel did not provide comments in response to inquiries from Reuters, nor was Starlink available for immediate feedback.
A senior official within the Indian government informed Reuters that the telecoms ministry is in the process of reviewing the pricing recommendations made by the regulatory body, acknowledging that these industry concerns have been previously voiced.
According to an industry insider, telecom companies like Reliance Jio are anxious about competing against satellite providers while facing significantly higher payment obligations. They have invested nearly $20 billion (approximately ₹1.71 lakh crore) in recent years to acquire 5G spectrum through auctions aimed at enhancing their telecom and broadband services.
Despite efforts from Ambani’s company to persuade the Indian government to auction satellite spectrum rather than distribute it administratively—as Starlink has preferred—those efforts have not been successful thus far.
Although Reliance and Airtel reached distribution agreements for Starlink equipment in March, they remain poised to compete with Starlink’s services once they are launched.
Telecoms minister Jyotiraditya Scindia stated on Tuesday that the licensing process for Starlink is “nearly complete,” as reported by The Print news outlet.
© Thomson Reuters 2025
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
