Promising: Starlink’s Elon Musk On Telecom Minister’s Satellite Broadband Comments
In a significant development for Elon Musk’s Starlink, India’s Communications Minister Jyotiraditya Scindia has confirmed that spectrum for satellite broadband will be allocated, not auctioned. This decision contrasts with calls from major Indian telecom players like Mukesh Ambani’s Reliance Jio and Sunil Mittal’s Bharti Airtel, who argue that auctioning would create a fairer competitive landscape.
On an X interaction, Musk called the announcement as “promising”.
Scindia explained that India, as a member of the International Telecommunications Union (ITU), is aligning with global norms that favour allocation over auctions for satellite spectrum. While the spectrum will not be free, the Telecom Regulatory Authority of India (TRAI) will set a price to ensure fair access. Scindia noted that most countries globally adopt similar administrative allocation methods, underlining the decision’s alignment with international practices.
Reliance Jio and Bharti Airtel, India’s top telecom operators, oppose this approach, contending that satellite spectrum should be auctioned to ensure a level playing field. They argue that telecom operators have historically paid for terrestrial spectrum rights, and an allocation-based system for satellite spectrum would give new entrants like Starlink an undue advantage.
Starlink, which is keen to expand into India, has applied for a licence to begin operations, aligning with Scindia’s announcement. Musk, responding to Reliance Jio’s opposition to TRAI’s stance, called the call for auctioning “unprecedented.” He questioned if allowing Starlink to operate would be “too much trouble,” pointing out that Starlink’s approach is consistent with global practices.
Under the Telecom Act of 2023, satellite spectrum allocation is listed in ‘Schedule 1,’ which mandates administrative pricing. Scindia confirmed the regulatory framework’s transparency, signalling India’s openness to foreign investment. While Musk has publicly criticised the opposition from Indian telecoms, Scindia’s comments mark a promising step for Starlink, as it aims to bring satellite internet to India’s expanding broadband market.
