Billionaire Mukesh Ambani’s Reliance has reportedly challenged the telecom regulator’s stance that home satellite broadband spectrum should be allocated by New Delhi instead of auctioned, escalating competition with Elon Musk's Starlink.
The debate over how to distribute spectrum for satellite services in India has been contentious since last year. Starlink and global players like Amazon’s Project Kuiper support administrative allocation, while Ambani advocates for an auction process.
The crux of the dispute lies in the interpretation of Indian law, which some industry experts assert facilitated last year’s spectrum allocation in alignment with Musk’s proposal. Reliance contends that no provisions currently exist for satellite broadband services aimed at individual or home users, according to a Reuters report.
The Telecom Regulatory Authority of India (TRAI) is conducting a public consultation on the matter. In a private letter dated October 10, Reliance requested that the process be restarted, arguing that TRAI has “pre-emptively interpreted” the situation in favor of allocation over auction.
“TRAI seems to have concluded, without any basis, that spectrum assignment should be administrative,” wrote Kapoor Singh Guliani, Reliance’s senior regulatory affairs official, in his correspondence with Telecom Minister Jyotiraditya Scindia.
TRAI's consultation paper indicates that Indian laws mandate the allocation of spectrum for such services without conducting comprehensive studies. Reliance's letter, however, has not been made public.
Comments from both Reliance and the telecom ministry are awaited, and the story will be updated as more information becomes available. BT could not independently verify the claims made in the report.
A senior TRAI official has reportedly stated that due process is being followed and encouraged Reliance to provide feedback during the consultation period.
The recommendations from TRAI will play a crucial role in the government’s final decision on spectrum allocation. Deloitte projects that India’s satellite broadband market will grow at an annual rate of 36%, potentially reaching $1.9 billion by 2030.
Musk is keen to launch Starlink in India, but unresolved spectrum allocation issues remain a significant obstacle. Starlink advocates for administrative licensing, arguing it aligns with global practices. In contrast, Reliance maintains that auctions are essential for a level playing field, particularly as foreign competitors may enter the voice and data services market.
Reliance Jio, with 480 million users, is the leading telecom provider in India.
To advance the issue, Reliance Jio has formally requested Minister Scindia to auction satellite spectrum and reissue TRAI's consultation paper to ensure fair competition between satellite communications and traditional networks.
In its October 10 letter, Jio noted that various global satellite constellations—including Starlink and Amazon Kuiper—are seeking spectrum and market access rights in India, positioning themselves to offer mobility services that will compete directly with terrestrial networks.
“Given that terrestrial networks acquire spectrum through auctions for mobile and fixed wireless access, a fair and transparent auction system for satellite services is essential for level competition,” Jio stated.
This correspondence follows a similar request made to TRAI chairman AK Lahoti, where Jio sought revisions to the consultation paper on spectrum pricing, asserting that the issue of a level playing field has been overlooked.
The Broadband India Forum (BIF), which includes members such as OneWeb and Amazon, has dismissed Jio’s call for a level playing field, arguing it demonstrates a misunderstanding of both technology and law.
In its recent letter, Jio pointed out that the Department of Telecommunications (DoT) had referenced the need for a level playing field when consulting TRAI, yet the regulator has not addressed this crucial concern.
"We respectfully request your intervention so TRAI addresses these issues in its consultation paper and ensures that its recommendations on spectrum assignment uphold fairness, transparency, and competition as mandated by the Telecommunications Act and Supreme Court rulings,” Jio urged.
Additionally, Jio noted that the DoT has not prescribed a specific methodology for spectrum assignment, leaving the matter open for discussion in accordance with Section 4 of the Telecommunications Act.
“TRAI seems to have concluded, without any basis, that spectrum assignment should be administrative and based on a 'first-come, first-served' approach,” Jio stated.