Elon Musk challenges Mukesh Ambani on satellite spectrum allocation

Elon Musk, the CEO of Starlink, has remarked that choosing to auction satellite broadband spectrum in India, instead of administratively allocating it, would represent an "unprecedented" action. His statements contrast with those of Mukesh Ambani, as reports suggest that Ambani's Reliance Industries has been advocating for the auction approach.

The core of the disagreement lies in whether the spectrum should be auctioned or allocated through administrative means, with both parties offering differing interpretations of both international and Indian regulations.

Musk has pledged to support India through Starlink, following the government's decision to administratively allocate satellite spectrum. This decision positions Starlink in competition with Reliance Jio and Bharti Airtel, with expectations that Starlink will soon obtain a GMPCS license.

In a post on his social media platform X, which he acquired two years ago, Musk voiced his opposition to India's potential decision to auction satellite broadband spectrum. He contended that the spectrum in question has been designated as a shared satellite spectrum by the International Telecommunication Union (ITU) for an extended period, advocating for its allocation to be handled "rationally, efficiently, and economically."

Musk stated, “That would be unprecedented, as this spectrum was long designated by the ITU as shared spectrum for satellites,” in response to a news article regarding Ambani.

Starlink, along with other global entities such as Amazon’s Project Kuiper, is promoting administrative allocation — a process where spectrum is assigned without an auction. They argue that this approach is consistent with international best practices and would facilitate the swift advancement of satellite broadband services in India.

Additionally, reports indicate that Reliance submitted a private letter to the Telecom Regulatory Authority of India (Trai) on October 10, contesting the regulator's stance and calling for a renewed consultation process. This letter has not been disclosed to the public.

Airtel supports Starlink

Airtel has expressed its perspective on the current discussion regarding the allocation of satellite broadband spectrum in India, which features key players such as Elon Musk's Starlink and Mukesh Ambani's Reliance Jio. The company has reiterated its endorsement of the administrative allocation method for satellite spectrum, emphasizing its commitment to technologies that enhance connectivity in India's remote regions.

In its statement, Airtel said, "We have always supported satellite communication services to connect remote areas for maritime, aviation, defence, and disaster recovery needs."

Additionally, Airtel highlighted its collaboration with Eutelsat OneWeb, which operates a low-Earth orbit (LEO) satellite network. This partnership aims to deliver satellite services across India and Africa, with two ground stations already established in Gujarat and Tamil Nadu, pending regulatory approval to commence operations.

Airtel further stated that entities wishing to provide satellite services to urban and retail markets must obtain licenses through the standard procedures and acquire spectrum. This stipulation implies that satellite operators are required to adhere to the same regulations as traditional telecom companies, including obtaining licenses, purchasing spectrum, fulfilling rollout obligations, and remitting taxes and fees. Furthermore, Airtel noted the potential for collaboration between mobile and satellite operators to enhance internet access in underserved areas.

This statement from Airtel arises amidst a contention between Starlink and Reliance Jio regarding the method of assigning satellite broadband spectrum in India. Jio advocates for an auction-based approach, arguing that it would promote fair competition. Conversely, Starlink contends that auctioning the spectrum would contravene established international standards set by the International Telecommunication Union (ITU).

Airtel aligns with Starlink's preference for administrative allocation, viewing it as a beneficial approach to augment existing telecom networks and address specific requirements such as defence and backhaul in remote locations. The company asserts that the allocation of spectrum for satellite services should primarily be conducted administratively, with certain exceptions made for disaster management and governmental purposes.