Indian billionaire Mukesh Ambani’s Reliance Industries is intensifying its battle against Elon Musk’s Starlink by contesting the Indian telecom regulator’s conclusion that satellite broadband spectrum should be allocated administratively rather than through an auction process. In a letter obtained by Reuters, Reliance argues that the Telecom Regulatory Authority of India (TRAI) has prematurely determined the method for spectrum allocation, which is critical for the rapidly expanding satellite broadband market.
The sector, projected to grow at a rate of 36% annually, reaching $1.9 billion by 2030 according to Deloitte, has been contentious since last year. Musk’s Starlink, along with global competitors like Amazon’s Project Kuiper, supports administrative allocation, while Ambani, who heads India’s largest telecom provider, Reliance Jio, advocates for an auction-based approach.
The current dispute revolves around differing interpretations of Indian law that some industry insiders believe favored Musk’s vision for spectrum allocation last year. However, Reliance contends that no legal provisions exist for satellite broadband services aimed at individual or home users, complicating the regulatory landscape.
In a private letter to India’s telecom minister, Jyotiraditya Scindia, dated October 10, Reliance’s senior regulatory affairs official, Kapoor Singh Guliani, expressed concerns that the TRAI has “pre-emptively interpreted” the allocation process without adequate justification. He emphasized the need for a new consultation process to ensure transparency and fairness.
A senior official from TRAI responded, assuring that due process is being followed and inviting Reliance to participate in the ongoing public consultation period. The recommendations made during this process will inform the government’s final decision on spectrum allocation.
Musk is eager to launch Starlink services in India; however, the ongoing spectrum allocation debate poses a significant hurdle. Starlink maintains that an administrative allotment of licenses aligns with global trends, while Reliance argues that an auction is necessary to level the playing field, especially as foreign companies could introduce competitive voice and data services.
As India’s leading telecom provider with 480 million subscribers, Reliance Jio’s stance could significantly impact the future dynamics of the satellite broadband market in India.
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