In a major development, India’s government has announced that it will allot satellite broadband spectrum administratively, rejecting the auction route that had sparked controversy between global tech mogul Elon Musk and Indian billionaire Mukesh Ambani. Telecom Minister Jyotiraditya Scindia made this announcement at an event in New Delhi, clarifying that the spectrum will be allocated as per Indian laws, with pricing set by the telecom watchdog.

This move comes shortly after Musk, whose Starlink project aims to provide satellite broadband globally, criticized the auction approach, describing it as “unprecedented.” Musk, through his platform X, reiterated that such auctions are not in line with global norms and that shared spectrum allocation for satellites had already been designated by the International Telecommunication Union (ITU), a United Nations agency. Musk added that auctioning this spectrum would go against the practices followed by most countries.

Ambani’s Reliance Jio, on the other hand, had pushed for an auction process to ensure transparency and a level playing field for all telecom and satellite companies. Mukesh Ambani’s argument was backed by Sunil Mittal, chair of Bharti Airtel and co-chair of Eutelsat, who believes that companies planning to enter the satellite broadband market must adhere to the same procedures as telecom operators and purchase the spectrum through auctions.

The Indian satellite broadband market is expected to grow at a rate of 36% annually, reaching $1.9 billion by 2030. As such, this decision by the government is a significant victory for Musk’s Starlink, which is seeking to expand its presence in developing countries like India. Other global players, such as Amazon’s Project Kuiper, have also supported administrative allocation, citing the need for shared access to the spectrum as a limited natural resource.

While the debate over spectrum allocation continues, India’s decision marks a pivotal moment in the ongoing rivalry between Musk and Ambani as they compete for dominance in the satellite broadband space.

Credit: This article is based on information from DNA India and Hindustan Times​

Key Highlights:

1. India will allot satellite broadband spectrum administratively, not via auction.
2. Elon Musk’s Starlink supports this decision, saying auctions would be unprecedented.
3. Mukesh Ambani’s Reliance Jio had lobbied for auctions to ensure fairness.
4. The satellite broadband market in India is projected to grow rapidly, reaching $1.9 billion by 2030.