Spectrum Showdown: Satellite Broadband in India

A decision by India's government to allocate satellite broadband spectrum administratively has sparked debates between Elon Musk and Mukesh Ambani. While Musk supports the move, Ambani argues for an auction to ensure fairness. The decision impacts the growing satellite market, anticipated to reach $1.9 billion by 2030.

In a significant policy decision, India's government announced on Tuesday that satellite broadband spectrum will be allotted administratively, rather than through auction. This comes shortly after Elon Musk criticized the auction method staunchly advocated by Mukesh Ambani. The debate marks a clash of billionaires over the future of satellite services in India, a market projected to grow 36% annually to hit $1.9 billion by 2030.

Musk's Starlink, advocating for administrative licensing, aligns with global trends, whereas Mukesh Ambani's Reliance argues auctions are needed to ensure a level playing field, given the lack of specific provisions in Indian law for satellite broadband. Telecoms Minister Jyotiraditya Scindia confirmed the spectrum allocation will adhere to Indian laws, with pricing determined by the telecom watchdog.

Reliance's challenge to the regulatory process, revealed by Reuters, precedes the minister's reassurance in favor of administrative allocation. Musk praised the government's decision on social media, calling it a step towards serving India with Starlink. Meanwhile, Sunil Mittal of Eutelsat and Airtel reiterated the need for auctions, arguing satellite enterprises should acquire spectrum like other telecom entities. Despite differing viewpoints, the decision aligns with international practices established by the International Telecommunication Union.

(With inputs from agencies.)