Ambani's Reliance contends that India's telecom regulator has incorrectly determined that home satellite broadband spectrum should be allocated rather than auctioned. — Reuters File
Starlink CEO Elon Musk commented that India's decision to auction satellite broadband spectrum, instead of allocating it, would be 'unprecedented', reacting to a Reuters report that rival billionaire Mukesh Ambani was advocating for the auction method. This situation is viewed as a clash between the two billionaires, with Starlink supporting administrative allocation of licenses, which aligns with global trends, while Ambani's Reliance argues that an auction is necessary for a fair competition, as foreign entities could provide voice and data services, competing with traditional telecom operators.
On Sunday, Reuters revealed that Ambani's Reliance has argued that India's telecom regulator has incorrectly concluded that home satellite broadband spectrum should be allocated rather than auctioned, without seeking industry feedback, necessitating a fresh consultation process. Responding to this news, Musk posted on X that any decision to auction, as Reliance is lobbying for, 'would be unprecedented.' 'This spectrum was long designated by the ITU as shared spectrum for satellites,' he wrote on Monday night on X, referring to the International Telecommunication Union (ITU), a specialized UN agency for digital technology. India is a member of the ITU and a signatory to its treaty that regulates satellite spectrum, advocating for its allocation to be done 'rationally, efficiently, and economically' as it is a 'limited natural resource.' Reliance did not respond to a request for comment on Tuesday. It has previously informed Reuters that it is 'imperative' for the Indian regulator to consult on the methodology of spectrum assignment.
The methodology of distributing spectrum for satellite services in India, a market expected to grow by 36% annually to reach $1.9 billion by 2030, has been a contentious issue since last year. Musk's Starlink and global competitors like Amazon's Project Kuiper support administrative allocation, arguing that it is a natural resource that should be shared among companies. Ambani, Asia's wealthiest man, advocates for an auction process. Reliance's recent lobbying efforts in India have escalated its confrontation with Musk, who aims to launch Starlink services in India but supports the spectrum allocation route, where the government directly assigns spectrum to companies. An Indian government source informed Reuters on Sunday that the regulator was following the proper consultation process.
