India’s government announced on Tuesday that it will allocate spectrum for satellite broadband services administratively, rather than through an auction process, just hours after Elon Musk criticized such a move being proposed by rival billionaire Mukesh Ambani as “unprecedented.”
The decision marks a significant point in the competitive landscape of satellite broadband in India, a sector projected to grow at an annual rate of 36%, reaching an estimated $1.9 billion by 2030. The allocation method has been a contentious issue since last year, pitting Musk’s Starlink against Ambani’s Reliance.
Musk argues that administrative allotment aligns with global practices, while Reliance contends that an auction is necessary to establish a fair competitive environment, citing the absence of specific legal provisions for individual satellite broadband service providers in India.
During an event in New Delhi, Telecom Minister Jyotiraditya Scindia reaffirmed the government’s stance, stating that spectrum would be allocated in accordance with Indian laws, with pricing determined by the telecommunications regulatory authority. “If you do decide to auction it, then you will be doing something which is different from the rest of the world,” Scindia remarked.
Musk welcomed the government’s decision, expressing his commitment to serving the Indian market through Starlink on the social media platform X. His endorsement came shortly after Reuters reported that Reliance had formally challenged the telecom regulator’s consultation process, arguing for a fresh start to discuss the allocation method for home satellite broadband spectrum.
Musk previously commented on X, emphasizing that any auction would be “unprecedented.” He referenced the International Telecommunication Union (ITU), which has designated this spectrum for shared satellite use. India, as a member of the ITU, is bound by the organization’s treaty that stipulates the allocation of such resources must be done “rationally, efficiently and economically,” given its status as a “limited natural resource.”
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