A high-stakes showdown emerges between the world’s richest man and Asia’s wealthiest

India’s satellite broadband sector is becoming a battleground for two of the world’s most influential businessmen—Tesla and Starlink chief Elon Musk and Reliance chairman Mukesh Ambani.

The controversy centers on how India should allocate its satellite broadband spectrum. Musk’s Starlink prefers administrative allocation, while Ambani’s Reliance is pushing for an auction-based approach.

This conflict has placed the regulatory framework of India’s telecom sector under the spotlight, with potential implications for both domestic and international players.

India’s spectrum allocation: auction or administrative route?

At the heart of the dispute is the method of spectrum allocation.

Musk advocates for administrative allotment, which aligns with a global trend of treating satellite spectrum as a shared natural resource.

According to Musk, this approach would allow various companies to operate fairly in India’s rapidly growing satellite broadband market.

On the other hand, Ambani’s Reliance is pushing for a more competitive auction-based process.

Reliance believes that auctioning the spectrum would create a level playing field, especially since foreign players like Starlink could potentially offer both voice and data services, competing with traditional telecom operators.

On Sunday, Reuters reported that Reliance contends India’s telecom regulator- Telecom Regulatory Authority of India (TRAI) has wrongly determined that home satellite broadband spectrum should be allocated rather than auctioned, without obtaining input from the industry, and is calling for the consultation process to restart.

While TRAI is currently conducting a public consultation, Reliance, in a private letter dated October 10, requested that the process be restarted, arguing that the regulator had “pre-emptively interpreted” that allocation, rather than auction, is the preferred approach.

“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, as reported by Reuters.

Ambani’s Reliance Jio, the largest telecom player in India with 480 million users, views the auction as crucial to safeguarding local businesses and ensuring fair competition.

Musk reacts to Reliance’s lobbying

Musk’s comments on the issue have been sharp. Responding to the report about Ambani’s lobbying, Musk stated on X (formerly Twitter) that India moving towards auctioning satellite broadband spectrum would be “unprecedented.”

He referenced the International Telecommunication Union (ITU), which regulates satellite spectrum globally, and emphasized that spectrum should be allocated “rationally, efficiently, and economically.”

Musk’s argument is that auctioning satellite spectrum contradicts international practices and could hinder innovation in the satellite broadband space.

His position has sparked significant debate in India, especially as Starlink eyes its entry into the Indian market.

The regulatory debate and economic stakes

How spectrum for satellite services in India will be given out has been a contentious issue since last year.

The current dispute is over interpretation of Indian law that some in the industry say paved the way for the allocation of spectrum last year as Musk wanted.

TRAI has in its consultation paper indicated Indian laws mandate allocation of spectrum for such services without conducting any studies, Reliance added in its letter, which is not public.

Reliance previously told Reuters it is “imperative” upon the Indian regulator to consult on the methodology of spectrum assignment.

With India’s satellite services market projected to grow at a rate of 36% per year and reach $1.9 billion by 2030, the stakes are high for both Starlink and Reliance.

The outcome of this regulatory debate could set the stage for future competition in India’s satellite broadband sector, with global players like Amazon’s Project Kuiper also watching closely.

This clash between Musk and Ambani is not just a regulatory dispute but a high-profile battle that could shape the future of India’s satellite broadband landscape.

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