Amidst the Competition of Billionaires in India, Satellite Spectrum to be Allotted Administratively

The allocation of spectrum for satellite broadband in India will be done in an administrative manner by the government and not based on an auction system as suggested by Mukesh Ambani because of the presence of Elon Musk’s Starlink among others.

The government of India on Tuesday made it public that it will distribute spectrum for satellite broadband service licenses through administrative methods as opposed to auctions which have been criticized by Elon Musk and his team. Musk had disparaged the auction system that trademarks Mukesh Ambani as ‘unprecedented’.

The satellite broadband service in India is valued at $1.9 billion and projected to grow by 36% annually. Starlink advocates for resource allocation without auctions, a common practice globally. In contrast, Reliance of Ambani calls for auctions to establish clear principles due to lack of legal regulations in India.

While addressing a press conference, Telecom Minister Jyotiraditya Scindia confirmed that the allocation of spectrum shall be in conformance with relevant Indian law and the price determined by the telecoms regulator. As he stated, “Should you wish to auction it however, you will be replacing the norm with something that contravenes the policy of the whole world.”

Musk took to social media to welcome the government policy, stating his readiness to implement Starlink in India. Reliance had already challenged the regulator concerning of the spectrum and even demanded the extension of the process.

“In my capacity as co-chair of the global umbrella group Eutelsat, I am against that idea, as satellite companies wishing to address the urban market have to buy the up-to-date spectrum just like other telecoms,” advocated Eutelsat executive Sunil Mittal. In the previous year, both Golden Globe and Eutelsat voiced their opposition to the proposed auction of the spectrum in their letters to the government.