Elon Musk has expressed approval of India's decision to allocate spectrum for satellite broadband services instead of auctioning it. This move, announced by Communications Minister Jyotiraditya Scindia, aligns with international practices. Musk responded with a single word, “Promising,” to a post on X (formerly Twitter) that discussed the announcement.
The post, shared by a user named Alex, stated: “NEWS: @Starlink India’s Minister for Communications Jyotiraditya Scindia said today in an interview with the Press Trust of India that spectrum for satellite broadband will be allocated, not auctioned as sought by telco tycoons Mukesh Ambani and Sunil Mittal.” Musk's comment indicates his support for India's approach, which could make it more feasible for companies like Starlink to enter the Indian market.
India's decision follows global standards set by the International Telecommunications Union (ITU). Scindia emphasized that no country auctions satellite spectrum, instead opting for allocation as per ITU guidelines. India has included satellite spectrum under “Schedule 1” of its Telecom Act of 2023, requiring government assignment.
This decision is seen as a setback for Indian telecom giants Jio and Airtel, led by Mukesh Ambani and Sunil Mittal, who have advocated for auctioning satellite spectrum akin to terrestrial networks. They argue that auctions ensure a fair market, having invested significantly in terrestrial spectrum.
Jio and Airtel view the satellite broadband market as vital to India’s digital growth. However, the government's allocation strategy could ease international players like Starlink into the market, where it is seeking an operating licence.
For Starlink, India is a key market with growing internet demand. A government-set price, rather than competitive bidding, could lower entry costs, aiding Starlink's expansion and affordability for consumers. If Starlink opts for a pricing structure in India that is similar to other countries, it will be one of the most expensive ways to get internet connectivity. We are yet to see if Musk plans on making any changes to the pricing in order to make Starlink a more feasible option for the Indian customer.