New Delhi: In a major setback for India's richest man Mukesh Ambani, the Telecom Ministry has decided to pursue the administrative route for allocation of satellite communication spectrum, which is in line with the global trend. Ambani had requested the Indian government to go for an auction, which the Starlink CEO Elon Musk had questioned.
Notably, Musk is eyeing an entry into the Indian telecom sector with Starlink. Earlier, Musk had objected to Reliance Industries Chairman's lobbying for an auction route for spectrum allocation.
Starlink and other global initiatives like Amazon’s Project Kuiper advocate for the administrative allocation of spectrum, aligning with international standards. Musk emphasised that the International Telecommunication Union (ITU), a UN agency of which India is a member, designates satellite spectrum as shared, arguing that it should not be subject to auction.
Musk, who has been a critic of auction demand, took a veiled dig at Ambani as he wrote to an X user, "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."
Ambani's Argument
Ambani, who has been pushing for an auction route for spectrum allocation, feels that it would provide a level playing field for telecom operators. Reliance Jio had also written a letter to the Telecom Regulatory Authority of India (TRAI) asking for a reassessment of its consultation paper that supports administrative allocation. The company urged the government to reconsider, asserting that an auction is essential to ensure fair competition.
"We have requested (the) TRAI to amend the consultation paper" to ensure a level playing field, Reliance Jio said 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 also backed Ambani's stance on the issue.
Why India Did Not Choose Auction Route
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.
Scindia assured that while the allocation would be administrative, the cost would be determined 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.
The satellite broadband market in India is projected to grow rapidly, with estimates indicating it could reach USD 1.9 billion by 2030.
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