Mukesh Ambani and Elon Musk’s Conflict Over India Satellite Spectrum Allocation Gets More Intense
Summary:
- India sides with Musk on satellite spectrum allocation
- Ambani’s Jio faces potential customer loss to Starlink
- Starlink may price aggressively in India with unlimited data
India’s Satellite Spectrum Decision Sparks Controversy
India has made a vital decision to administratively appoint satellite spectrum, igniting a clash between two of the world’s top industrialists, Mukesh Ambani, head of Reliance Jio, and Elon Musk, CEO of Starlink.
Background on Satellite Spectrum Allocation
Delivering internet services, especially in remote locations, requires satellite communications, which use radio frequencies known as the satellite spectrum. The International Telecommunication Union (ITU), a UN agency, regulates these frequencies, establishing them as shared resources.
Scindia clarified that satellite spectrum cannot be auctioned like terrestrial spectrum, as it is global and coordinated by the ITU. “Satellite spectrum is shared; if it is shared, how can you price it individually?” Scindia noted additional justifying the decision.
Read More: India and U.S. Sign Rs. 32,000 Crore Predator Drone Deal
The Clash of Titans: Ambani vs. Musk
Mukesh Ambani’s Position: Ambani’s Reliance Jio has been lobbying for the auction of satellite spectrum, claiming that this strategy would assure a level playing field between satellite operators and traditional telecom services. Jio argues that administrative funding could disadvantage local players against foreign contenders like Musk’s Starlink.
In a letter to the Telecom Regulatory Authority of India (TRAI), Jio expressed concern that the current consultation paper neglected the need for equitable competition between various service providers.
Elon Musk’s Response: Musk has blamed the call for auctions as “unprecedented,” arguing that it contradicts established international norms regarding satellite spectrum management. He endorses administrative allocation, aligning with global practices that enable faster deployment of satellite broadband assistance. Musk expressed gratitude to Scindia for abandoning the auction bid, indicating his willingness to serve Indian customers through Starlink.
Read More: Leatest Braking News Between India And US
Industry Reactions and Implications
The debate has drawn diverse stakeholders, including Sunil Bharti Mittal of Bharti Enterprises, who turned his perspective to support auctions for urban market entry. That reflects a more comprehensive concern among orthodox telecom operators about preserving a competitive balance in an evolving market landscape.
The TRAI is conducting consultations to decide on a pricing mechanism for administratively assigned spectrum. This process is essential as it will shape the future of satellite broadband in India, a sector poised for substantial growth—projected to extend at 36% annually and reach $1.9 billion by 2030
