Elon Musk has welcomed the Indian government's decision to allocate satellite broadband spectrum administratively, rather than through an auction. This move is seen as a positive step for Musk's satellite internet venture, Starlink, as it allows the company to avoid competitive bidding for spectrum access in the country.
At an event in New Delhi, India's Telecom Minister Jyotiraditya Scindia confirmed that the spectrum allocation will be done administratively, with the pricing set by the telecom regulator. Scindia emphasised that this approach aligns with international practices, stating, "If you do decide to auction it, then you will be doing something which is different from the rest of the world."
The decision comes amid debate on how India should distribute satellite spectrum, which will be critical to rolling out satellite-based internet services in the country.
Musk, on X (formerly Twitter)said, "We will do our best to serve the people of India with Starlink." He also noted that an auction for the spectrum would be unprecedented, adding that the International Telecommunication Union (ITU), a UN agency responsible for satellite communications, has long designated this type of spectrum for shared use among satellite operators.
Reliance bats for auctions
While Musk's Starlink supports administrative allocation, the decision faces opposition from India's telecom giants. Reliance, led by billionaire Mukesh Ambani, had earlier challenged the regulatory consultation process, arguing that an auction is necessary to ensure fairness. They believe satellite companies should purchase spectrum like traditional telecom firms, especially if they intend to serve urban areas with high-paying customers.
Sunil Mittal, co-chair of Eutelsat and chair of Bharti Airtel, also backed the auction route. Speaking at the New Delhi event, Mittal said, "Satellite companies who have ambitions to come into urban areas... need to buy the spectrum as telecom companies buy."
Globally, many countries follow the ITU’s guidelines of shared spectrum allocation for satellites, which supports Musk's and other satellite operators' stance. However, local telecom players like Reliance and Airtel are concerned about maintaining a level playing field. They argue that auctioning would bring transparency and fairness in spectrum distribution, especially with the growing demand for satellite internet services in urban areas.
Earlier in 2023, OneWeb, a subsidiary of Eutelsat that has partnered with Airtel, had also expressed concerns about auctioning satellite spectrum in its submissions to the Indian government. Yet, global satellite operators, including Starlink and Amazon's Project Kuiper, continue to advocate for administrative allocations, viewing spectrum as a shared resource.