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    Musk Criticizes India’s Potential Auction of Satellite Spectrum Amidst Rivalry with Ambani

    Elon Musk, the CEO of Starlink, has expressed strong opposition to India’s potential move to auction satellite broadband spectrum, labeling it as “unprecedented.” His comments came in response to a Reuters report detailing how billionaire Mukesh Ambani is lobbying for an auction system, arguing that such a method would ensure a level playing field for telecom competitors.

    Starlink advocates for the administrative allotment of licenses, asserting that this approach aligns with global practices. In contrast, Ambani’s Reliance Industries insists that an auction is necessary, particularly as foreign entities could potentially enter the market with voice and data services, posing a threat to traditional telecom operators.

    According to Reuters, Ambani’s Reliance contends that India’s telecom regulator has misjudged the allocation of satellite broadband spectrum, asserting that it should be auctioned rather than allocated without sufficient industry consultation. They are calling for a fresh review of the process.

    Reacting to this situation, Musk took to X (formerly Twitter), stating that an auction, as pushed by Ambani, would be an unusual step. “This spectrum was long designated by the ITU as shared spectrum for satellites,” Musk noted, referencing the International Telecommunication Union, a UN agency that governs satellite communications.

    India, a signatory to the ITU treaty, maintains that spectrum allocation should be conducted “rationally, efficiently, and economically,” given its status as a limited resource. Reliance has not yet responded to inquiries about Musk’s comments but has previously emphasized the need for regulatory consultation regarding the spectrum assignment methodology.

    The methodology for assigning satellite spectrum in India has become a contentious issue, particularly as the market is projected to expand significantly—growing by 36% annually to reach $1.9 billion by 2030. While Musk’s Starlink and other global companies like Amazon’s Project Kuiper support administrative allocation, Ambani champions the auction approach in this escalating battle for market dominance.

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