Elon Musk Calls Mukesh Ambani's Push For Satcom Spectrum Auctions 'Unprecedented'. Here's How The Govt Responded

Bharti Airtel’s Sunil Bharti Mittal also advocated for auctions, stating that satellite providers should face the same spectrum purchase requirements as traditional telecom operators.

Musk, eager to expand Starlink's presence in India, has been a vocal opponent of spectrum auctions.

Source : ANI

The Government has opted to allocate satellite communication (satcom) spectrum through administrative measures, bypassing the auction route favoured by billionaires Reliance Industries Director Mukesh Ambani and Bharti Enterprises Chairman Sunil Bharti Mittal, as reported by Reuters. This decision follows objections from Starlink's CEO, Elon Musk, who criticised Reliance Jio’s push for auctions.

What Did Musk Say?

Musk, eager to expand Starlink's presence in India, has been a vocal opponent of spectrum auctions, a method preferred by Ambani's Reliance Jio. Starlink, along with other global players like Amazon’s Project Kuiper, supports administrative allocation, aligning with international norms. Musk pointed out that the International Telecommunication Union (ITU), a UN body to which India belongs, classifies satellite spectrum as shared and not suited for auctions.

🧐

That would be unprecedented, as this spectrum was long designated by the ITU as shared spectrum for satellites.

— Elon Musk (@elonmusk) October 14, 2024

In response to reports of Reliance Jio’s challenge to the administrative route, Musk described the idea of an auction as "unprecedented" for satellite spectrum. He further remarked on social media, sarcastically suggesting he would ask if Starlink could be allowed to compete in providing internet services to India.

Jio Lobbying For Auction

Meanwhile, Reliance Jio has been reportedly lobbying for an auction, arguing it would create a level playing field for all telecom operators. The company recently urged the Telecom Regulatory Authority of India (TRAI) to reconsider its stance on administrative allocation, stressing that competitive bidding is crucial for fair market practices.

Bharti Airtel’s Sunil Bharti Mittal also advocated for auctions, stating that satellite providers should face the same spectrum purchase requirements as traditional telecom operators.

However, Telecom Minister Jyotiraditya Scindia reportedly confirmed that India would follow the global practice of administratively allocating satellite spectrum. He emphasised that the Telecom Regulatory Authority of India (TRAI) would determine the pricing, ensuring fairness in the process. 

India's satellite broadband market is expected to experience rapid growth, potentially reaching $1.9 billion by 2030.