Tech billionaire Elon Musk expressed his gratitude to India’s Telecom Minister, Jyotiraditya Scindia, for opposing the auction of satellite spectrum, which would have favored Indian business tycoons Mukesh Ambani and Sunil Bharti Mittal. In a post on the social media platform X, Musk stated, “Much appreciated! We will do our best to serve the people of India with Starlink,” indicating his commitment to expanding Starlink’s services in the country.
Standoff Over Satellite Spectrum
Musk’s comments come amid ongoing tensions between him and Indian billionaires over the allocation of satellite spectrum. Recently, Reliance Jio, led by Ambani, requested a revision of a consultation paper that outlines the terms for assigning spectrum for satellite-based communication services.
Trai Chairman Anil Kumar Lahoti addressed the media regarding the consultation process initiated by the Telecom Department. He noted, “We have received a reference from the Telecom Department…the consultation process is on, we will consider all inputs and views that are received during the consultation process and we will come out with our considered recommendations.”
Reliance Jio’s Perspective
Ambani’s Reliance Jio has been advocating for the auction of satellite spectrum to create a level playing field for traditional telecom operators who invest in infrastructure like towers. Meanwhile, Mittal has also supported the idea that satellite companies should be able to acquire spectrum as telecom operators do.
Musk’s Push for Administrative Allotment
In contrast, Musk’s Starlink is seeking an administrative allotment of licenses, a trend observed globally, as it aims to enter one of the fastest-growing mobile telephony and internet markets. Telecom Minister Scindia has backed this administrative approach, confirming that satellite spectrum will be allocated without an auction process.
Scindia explained that the recent Telecom Act of 2023 has classified the matter in ‘Schedule 1’, indicating that spectrum for satellite communications will be allocated administratively. However, he clarified, “That does not mean that spectrum does not come without a cost…it will be decided by Trai.”
BREAKING: India’s government said it will allot spectrum for satellite broadband administratively and not via auction, hours after Elon Musk criticized the auction route being sought by billionaire Mukesh Ambani.
Good News for Starlink 🇮🇳 pic.twitter.com/YWIcv32V1n
— DogeDesigner (@cb_doge) October 15, 2024
Insights on Spectrum Pricing
The minister expressed confidence that Trai would determine a fair pricing structure for the administrative allocation. He stated, “Satellite spectrum across the world is allocated administratively…if you do decide to auction it then you would be doing something which is different from the rest of the world.”
Additionally, Scindia noted, “If the spectrum is shared, then how can you price it individually?” This remark highlights the complexities involved in pricing shared satellite spectrum.
Musk’s Reaction to Jio’s Demands
Elon Musk has criticized Jio’s demands, labeling them as “unprecedented” and questioning whether it was “too much trouble” to allow Starlink to offer internet services in India. This ongoing conflict over spectrum allocation underscores the competitive dynamics in the rapidly evolving telecommunications landscape in India.