Indian billionaire Mukesh Ambani’s Reliance is pressing the government to reconsider the telecom regulator’s conclusion that spectrum for home satellite broadband should be allocated administratively rather than through auctions. This dispute has intensified the rivalry with Elon Musk’s Starlink.
The allocation of spectrum for satellite services in India has been a contentious topic since last year. Musk’s Starlink, along with other global competitors like Amazon’s Project Kuiper, favors administrative allocation, while Ambani, who leads India’s Reliance Jio, advocates for an auction process.
The current contention revolves around the interpretation of Indian law, which some industry experts believe facilitated the spectrum allocation last year, aligning with Musk’s preferences. However, Reliance argues that there are no existing provisions for satellite broadband services intended for individual or home users, according to industry sources.
The Telecom Regulatory Authority of India (TRAI) is currently conducting a public consultation on this issue. In a private letter dated October 10, Reliance requested that the process be restarted, arguing that TRAI has prematurely decided that allocation is the appropriate path forward instead of an auction.
“TRAI appears to have concluded, without justification, that spectrum assignment should be done through administrative means,” wrote Kapoor Singh Guliani, a senior regulatory affairs official at Reliance, in his letter to Telecom Minister Jyotiraditya Scindia.
TRAI’s consultation document suggests that Indian laws require spectrum allocation for such services without conducting comprehensive studies, a point Reliance addressed in its non-public letter.
Neither Reliance nor the telecom ministry responded immediately to requests for comment. However, a senior TRAI official indicated that due process is being observed and that Reliance is invited to provide feedback during the consultation period.
The recommendations from TRAI will play a crucial role in guiding the government’s decision on the issue.
According to Deloitte, India’s satellite broadband market is projected to grow at a rate of 36% per year, potentially reaching $1.9 billion by 2030.
Musk is eager to launch Starlink in India, but the final decision on spectrum allocation remains a significant hurdle. Starlink contends that administrative licensing aligns with global trends, while Reliance emphasizes the need for auctions to ensure a level playing field, as foreign entities may offer voice and data services, posing competition to traditional players.
Reliance Jio currently holds the position of India’s leading telecom provider, boasting 480 million subscribers.
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