India’s government revealed on Tuesday that it will allocate spectrum for satellite broadband services administratively, rather than through an auction, in line with global practices. This decision comes just hours after Elon Musk criticized calls for an auction, which had been championed by his rival, Indian billionaire Mukesh Ambani, Reuters news report said.
The debate over how to award satellite spectrum, a market in India expected to grow 36 percent annually to $1.9 billion by 2030, has been contentious. Elon Musk’s Starlink argues that administrative allocation follows global trends, while Ambani’s Reliance Jio has been advocating for an auction to ensure fairness, noting that Indian law does not currently provide for the satellite broadband spectrum to be allocated administratively.
Telecom Minister Jyotiraditya Scindia, speaking at the India Mobile Congress 2024, a telecom event in New Delhi, confirmed that the spectrum will be allocated administratively, with the telecom regulator determining pricing. Jyotiraditya Scindia warned that an auction would be out of step with international norms, which see spectrum as a “limited natural resource” that should be allocated efficiently, as advised by the International Telecommunication Union (ITU), a UN agency.
Elon Musk had previously expressed concern, calling the auction proposal “unprecedented.” He cited the ITU’s longstanding designation of satellite spectrum as shared, a view supported by other global players like Amazon’s Project Kuiper.
Bharti Airtel’s Sunil Mittal said that satellite companies should follow the same rules as telecom operators if they want to serve urban markets, advocating for an auction-based allocation.
India government’s stance is likely to bolster Elon Musk’s Starlink and other satellite providers who favor the administrative route, setting the stage for rapid satellite broadband expansion in India.