Reliance Lobbies for Satellite Spectrum Auction in New Clash With Starlink

Mukesh Ambani’s Reliance pressed India’s telecom watchdog on Friday to reconsider its plan not to auction satellite spectrum but to simply allocate it, in a fresh clash with Elon Musk’s Starlink.

India’s telecoms Minister Jyotiraditya Scindia last month said the government would allocate spectrum administratively in line with global trends but a final notification on how spectrum is given out will come after the telecom watchdog TRAI gives its feedback.

Musk’s Starlink has expressed interest in launching in India following a successful launch in Africa which left local players bruised by low broadband prices and favours the government’s approach to allocating spectrum.

Ravi Gandhi, a top Reliance policy executive, urged the telecom regulator TRAI on Friday, however, to review the decision, noting in an open house discussion hosted by TRAI that the move to allocate spectrum administratively is “the most discriminatory method of assigning any kind of government resource”.

Starlink India executive Parnil Urdhwareshe on the other hand said India’s allocation plan was “forward-looking”.

Billionaire Ambani runs India’s biggest telecom company, Reliance Jio. Analysts say a spectrum auction, requiring much more investment, would likely deter foreign rivals.

The TRAI’s recommendations, which will be formed over coming weeks, will be critical in deciding the future course of how satellite spectrum is doled out.

Reliance, which has dominated India’s telecom sector for years, is concerned that after spending $19 billion in airwave auctions it risks losing broadband customers to Musk, and potentially even data and voice clients later as technology advances, Reuters previously reported.

The methodology of giving out spectrum for satellite services in India has been a topic of contention between the billionaires.

Musk’s Starlink, a unit of SpaceX, has 6,400 active satellites orbiting earth to provide low-latency broadband to 4 million customers.

Ambani once gave data for free on his mobile plans, but Musk is no stranger to such tactics.

In Kenya, Musk priced Starlink at $10 per month, versus $120 in United States, with rental plans available for higher hardware cost. Kenya’s Safaricom in July complained to local regulators, calling for players like Starlink to be required to partner with mobile networks, and not operate independently. Mukesh Ambani’s Reliance pressed India’s telecom watchdog on Friday to reconsider its plan not to auction satellite spectrum but to simply allocate it, in a fresh clash with Elon Musk’s Starlink.

India’s telecoms Minister Jyotiraditya Scindia last month said the government would allocate spectrum administratively in line with global trends but a final notification on how spectrum is given out will come after the telecom watchdog TRAI gives its feedback.

Musk’s Starlink has expressed interest in launching in India following a successful launch in Africa which left local players bruised by low broadband prices and favours the government’s approach to allocating spectrum.

Ravi Gandhi, a top Reliance policy executive, urged the telecom regulator TRAI on Friday, however, to review the decision, noting in an open house discussion hosted by TRAI that the move to allocate spectrum administratively is “the most discriminatory method of assigning any kind of government resource”.

Starlink India executive Parnil Urdhwareshe on the other hand said India’s allocation plan was “forward-looking”.

Billionaire Ambani runs India’s biggest telecom company, Reliance Jio. Analysts say a spectrum auction, requiring much more investment, would likely deter foreign rivals.

The TRAI’s recommendations, which will be formed over coming weeks, will be critical in deciding the future course of how satellite spectrum is doled out.

Reliance, which has dominated India’s telecom sector for years, is concerned that after spending $19 billion in airwave auctions it risks losing broadband customers to Musk, and potentially even data and voice clients later as technology advances, Reuters previously reported.

The methodology of giving out spectrum for satellite services in India has been a topic of contention between the billionaires.

Musk’s Starlink, a unit of SpaceX, has 6,400 active satellites orbiting earth to provide low-latency broadband to 4 million customers.

Ambani once gave data for free on his mobile plans, but Musk is no stranger to such tactics.

In Kenya, Musk priced Starlink at $10 per month, versus $120 in United States, with rental plans available for higher hardware cost. Kenya’s Safaricom in July complained to local regulators, calling for players like Starlink to be required to partner with mobile networks, and not operate independently.

© Thomson Reuters 2024