Starlink CEO Elon Musk has applauded India’s decision to not auction its satellite communication spectrum. From the start, Starlink and other global initiatives like Amazon’s Project Kuiper have backed the administrative allocation of spectrum in India, aligning with international standards. On the other hand, India’s wealthiest industrialist Mukesh Ambani requested the government to go for an auction.
Elon Musk takes a dig at Mukesh Ambani
The Starlink CEO took a dig at Ambani indirectly by commenting on X (formerly Tweeter), "I will call and ask if it would not be too much trouble to allow Starlink to compete to provide internet services to the people of India."
Interestingly, Musk’s Starlink is eyeing an entry into the Indian telecom sector. He had even objected to Reliance Industries Chairman's lobbying for auctioning in the spectrum allocation.
Musk pointed out that the International Telecommunication Union (ITU), a UN agency of which India is a member, elects satellite spectrum as shared, and that it should not be subject to auction.
India adopts global policy
However, Telecom Minister Jyotiraditya Scindia announced that India will adopt the global trend of administrative spectrum allocation. "Satellite spectrum across the world is allocated administratively. So, India is not doing anything different from the rest of the world,” he said.
Musk thanked Scindia, saying, "much appreciated!” in a post on X.
Scindia stated that while the allocation would be administrative, the cost would be decided by TRAI to ensure fairness. "The regulatory authority of telecom has been empowered by the constitution to decide what that administrative pricing is going to be,” he added.
Ambani has been advocating for an auction route for spectrum allocation saying it would provide a level playing field for telecom operators.
Ambani keeps pushing
His company, Reliance Jio even addressed a letter to the Telecom Regulatory Authority of India (TRAI) requesting a reassessment of its consultation paper urging the Indian government to reconsider, pointing out that an auction is essential to secure fair competition.
"We have requested (the) TRAI to amend the consultation paper" to permit a level playing field, Reliance Jio disclosed in a statement to Reuters on Sunday, adding that "it is imperative upon TRAI to also consult on the methodology of assignment" of spectrum.
Airtel's Sunil Mittal has supported Ambani on the matter.
Meanwhile, Elon Musk has hinted at Starlink's launch in India saying, “We will do our best to serve the people of India.”
Reportedly, the satellite broadband market in India will flourish fast. It could reach USD 1.9 billion by the end of the decade.
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