Mukesh Ambani, Elon Musk Clash Over Satellite Internet Spectrum Allocation

By siliconindia  |  Monday, 14 October 2024, 10:33:57 AM IST

Mukesh Ambani, Elon Musk Clash Over Satellite Internet Spectrum Allocation
An ongoing battle is on between Mukesh Ambani's Reliance and Elon Musk's Starlink in respect of how satellite broadband spectrum must be distributed in India. The Reliance firm has protested a TRAI decision to give it the spectrum administratively rather than through auction. The controversy marks an ever competitive play in the relatively recent market entry of other foreign players like Starlink, who support administrative allocation.
According to Reliance, an auction would provide greater depth and competition for Indian companies in the market place. It states that the present system may also disadvantage domestic telecom firms as it already provides an edge to international players. Starlink and other international players like Amazon's Project Kuiper support administrative allocation and believe that it is most similar to the kind undertaken in most international markets.
The telecom regulator TRAI has initiated a public consultation on the issue, but Reliance was sharply critical of the process in a letter to the regulator dated October 10. TRAI has been accused of prematurely endorsing the allocation route without adequate studies and the company is pushing for the process to be restarted.
According to Deloitte, India's market for satellite broadband will grow with an annual rate of 36% and reach $1.9 billion in value by 2030. The sector is gaining attention from global players. Starlink is one of them, as the latter is interested in the Indian market. This will be determining as to how one balances the competition between indigenous players like Reliance Jio and the global giants.
If allocation is allowed, foreign players may hold the market, head-on competing with the traditional telecom operators. However, an auction process may give the Indian companies a better chance to compete.

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