The Indian government has decided to allocate satellite communication (satcom) spectrum through an administrative process, bypassing the auction method that was strongly advocated by industry leaders Mukesh Ambani and Sunil Bharti Mittal. This decision follows objections from Elon Musk, CEO of Starlink, who criticized Reliance Jio’s push for an auction.
Elon Musk, with plans to expand Starlink’s operations in India, has been vocal against the auction route, a stance supported by other global companies like Amazon’s Project Kuiper. They argue that administrative allocation aligns with international norms. Musk pointed out that the International Telecommunication Union (ITU), a UN agency, classifies satellite spectrum as shared and, therefore, not subject to auctioning. He referred to the auction idea in India as “unprecedented.”
In a social media post, Musk further emphasized his frustration with the push for an auction, hinting at Reliance Jio’s lobbying efforts. He remarked, “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.”
On the opposing side, Reliance Jio, led by Mukesh Ambani, has advocated for satellite spectrum to be auctioned, arguing that it ensures a “level playing field” for telecom companies. Reliance insists that satellite operators should undergo the same competitive bidding process as terrestrial telecom services. Recently, Reliance Jio appealed to the Telecom Regulatory Authority of India (TRAI) to reassess its consultation paper that leaned towards administrative allocation. It stressed that only an auction could ensure fair competition in the sector.
Sunil Bharti Mittal, chairman of Bharti Airtel, has also backed the auction model. He emphasized that satellite service providers targeting urban and retail markets should follow the same licensing norms as telecom companies, saying, “They need to buy the spectrum as telecom companies do.”
Despite these calls for an auction, India’s Telecom Minister, Jyotiraditya Scindia, announced that the country would follow the global trend of administrative spectrum allocation. “India is not doing anything different from the rest of the world,” he said. However, he assured that while the allocation process would remain administrative, the cost of the spectrum would be determined by TRAI, ensuring fairness and transparency in pricing.
The satellite broadband market in India is projected to witness rapid growth, with industry estimates suggesting it could reach USD 1.9 billion by 2030.
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