Spectrum Showdown: Musk vs Indian Telecom Titans

The Indian government has decided to allocate, rather than auction, satellite broadband spectrum, aligning with Elon Musk's Starlink's preference. Communications Minister Scindia justified this decision despite opposition from Indian telecom giants Ambani and Mittal, who advocate for auctions to maintain competitive balance.

In a significant development favoring Elon Musk's Starlink, India's Communications Minister Jyotiraditya Scindia has announced that satellite broadband spectrum will be administratively allocated instead of auctioned. This decision counters the interests of Indian telecom tycoons Mukesh Ambani and Sunil Mittal, who have lobbied for an auction-based allocation.

The spectrum will not be free, with the Telecom Regulatory Authority of India (TRAI) setting a price. Scindia emphasized India's adherence to International Telecommunications Union guidelines, which prefer assignment rather than auctions for spectrum allocation, in line with global trends.

The decision has sparked debates, with Reliance Jio and Bharti Airtel expressing concerns over an uneven playing field, as they purchase spectrum via auctions for their terrestrial operations. Meanwhile, Starlink has applied for a license to begin operations in India, seeing the allocation as advantageous in expanding into the burgeoning Indian market.

(With inputs from agencies.)