Elon Musk has entered the fray in the battle for satellite broadband spectrum allocation in India, responding to a meme that features Mukesh Ambani, chairman of Reliance Industries. The competition between the two billionaires has intensified as they vie for control over this lucrative market.
Musk, the CEO of SpaceX, stated, “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,” following his comments about India’s decision to auction the satellite broadband spectrum. This statement came shortly after Musk criticized Ambani’s push for an auction route, deeming it “unprecedented.”
In response to Musk’s remarks, the Indian government announced that it would allocate spectrum for satellite broadband administratively rather than through an auction, shifting the dynamics in this ongoing rivalry.
The conflict is rooted in differing approaches to spectrum allocation. Musk argues that an administrative allotment aligns with global trends, while Ambani’s Reliance Jio contends that an auction is necessary to ensure a level playing field for local providers against foreign competitors.
Musk aims to extend Starlink’s satellite internet services, particularly to rural areas in India, where access to high-speed internet is limited. He believes that auctioning the spectrum could impose geographical restrictions and raise costs, making it challenging for companies like Starlink to compete effectively. Conversely, Ambani’s Reliance Jio supports the auction process to prevent foreign companies from gaining an unfair advantage over local telecom operators.
The spectrum allocation methodology in India, a market projected to grow 36% annually to reach $1.9 billion by 2030, has been a contentious issue for over a year. With the recent government decision favoring administrative allotment, it appears to bolster Musk’s position in this high-stakes competition.
Just hours before, Musk also reacted to a post highlighting the government’s decision, emphasizing the implications of his criticism of the auction approach sought by Ambani.