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Starlink CEO Elon Musk has expressed strong opposition to India’s potential decision to auction satellite broadband spectrum, claiming such a move would be an “unprecedented” development. His comments come in light of reports indicating that Mukesh Ambani, another billionaire and head of Reliance, is advocating for an auction system instead of the direct allocation of spectrum licenses.
This situation highlights a growing rivalry between Musk and Ambani. Starlink argues that the administrative allocation of licenses aligns with global practices, while Reliance insists that an auction is necessary to create a fair competition landscape, especially since international players could potentially offer both voice and data services, posing a threat to local telecom operators.
Recent reports have indicated that Reliance is contesting the Indian telecom regulator’s conclusion that satellite broadband spectrum should be allocated without an auction. The company claims that there was no sufficient industry consultation prior to this decision and calls for a comprehensive reassessment of the process.
Musk took to social media platform X to voice his disapproval, stating that lobbying for an auction is not only unorthodox but also against the norms established by the International Telecommunication Union (ITU), which designates such spectrum as shared for satellite use. He emphasized the need for rational and efficient management of this limited resource.
As a member of the ITU, India has an obligation to manage satellite spectrum in a way that adheres to international guidelines, which encourage fair allocation practices. In this context, Reliance has yet to provide any commentary on Musk’s statements, although they have previously emphasized the importance of consulting the industry regarding spectrum assignment methods.
The approach to spectrum allocation for satellite services has been a point of contention in India, particularly given the market’s expected growth of 36% per year, potentially reaching $1.9 billion by 2030. Musk’s Starlink, along with other global entities such as Amazon’s Project Kuiper, favors an administrative allocation model that promotes resource sharing among companies. Conversely, Ambani’s team is firmly advocating for an auction system.
The intensifying lobbying efforts by Reliance signal a significant challenge for Musk, who aims to establish Starlink operations in India while continuing to support a spectrum allocation method that bypasses auctions. According to an Indian government insider, the regulatory body is reportedly adhering to established consultation procedures as it navigates this complex scenario.
Source
finance.yahoo.com