Reliance Industries, led by billionaire Mukesh Ambani, has intensified its lobbying efforts with the Indian government over the allocation of satellite broadband spectrum. This move sets the stage for a significant confrontation with Elon Musk’s Starlink. The battle revolves around the methodology of giving out spectrum for satellite services in India, a market set to grow 36% a year to reach $1.9 billion by 2030 according to Deloitte.
Musk’s Starlink and global peers like Amazon’s Project Kuiper back an administrative allocation, while Ambani, who runs India’s Reliance Jio, is advocating for an auction process. The current dispute centers on the interpretation of Indian law. Some industry insiders say it paved the way for the allocation of spectrum last year as Musk wanted.
However, Reliance argues that no provisions are in place for satellite broadband services for individual or home users. The telecom regulator, TRAI, is holding a public consultation. In a private letter dated October 10, Reliance requested that the process be restarted, stating that the watchdog has “pre-emptively interpreted” that allocation is the way forward.
“TRAI seems to have concluded, without any basis, that spectrum assignment should be administrative,” Reliance’s senior regulatory affairs official Kapoor Singh Guliani wrote in the letter to India’s telecoms minister Jyotiraditya Scindia.
Reliance pushes for spectrum auction
TRAI has indicated in its consultation paper that Indian laws mandate allocation of spectrum for such services without conducting any studies, which Reliance contests.
We have requested TRAI to amend the consultation paper” to ensure a level playing field, Reliance Jio said in a statement. A senior TRAI official confirmed that due process is being followed and Reliance is welcome to share feedback during the consultation period. The recommendations of the watchdog will form the basis for the government’s decision on the matter.
Tesla boss Musk is keen to launch Starlink in India, though a final decision on spectrum allocation remains unresolved. Starlink supports the administrative allotment of licenses, aligning with global trends. Reliance, however, insists that an auction is necessary for a level playing field, highlighting that foreign players could offer voice and data services, competing with traditional players.
The ongoing battle has significant economic implications, with both companies poised to invest heavily in infrastructure and technology. The outcome of these lobbying efforts could shape the future of digital connectivity in India, impacting millions of users and various sectors reliant on high-speed internet. The Indian government is expected to deliberate on the matter amidst growing industry pressure.
Both Reliance and Starlink have mobilized extensive resources to make their case, highlighting the critical importance of regulatory decisions in the evolving tech landscape.
Rashan is a seasoned technology journalist and visionary leader serving as the Editor-in-Chief of DevX.com, a leading online publication focused on software development, programming languages, and emerging technologies. With his deep expertise in the tech industry and her passion for empowering developers, Rashan has transformed DevX.com into a vibrant hub of knowledge and innovation. Reach out to Rashan at [email protected]
