The Indian government has announced its decision to allocate spectrum for satellite broadband services, marking a significant win for Elon Musk’s Starlink and similar global satellite companies. Communications Minister Jyotiraditya Scindia revealed that India would adopt a command-based approach for satellite spectrum, in line with International Telecommunications Union (ITU) international standards. This goes against the demands of Indian telecom giants.
Starlink has advocated administrative allocation of spectrum, with the government setting the price rather than competitive bidding. This approach, common in many countries for satellite broadband spectrum, allows companies like Starlink to enter and expand the Indian market without the high costs associated with traditional telecom spectrum auctions.
Starlink, which has applied for a license to operate in India, will benefit from the lower entry costs. The fixed-price approach could allow Starlink to roll out services more affordably, making it easier to establish itself in one of the world’s fastest-growing internet markets.
Communications Minister Scindia emphasized that “every country must follow the ITU, which is very clear that spectrum in space should be allocated and not auctioned,” ensuring that India’s policies are in line with global standards.
However, this decision has raised concerns among Indian telecom giants Reliance Jio and Bharti Airtel, led by Mukesh Ambani and Sunil Mittal respectively. They argue that satellite spectrum should be auctioned to ensure fair competition as they currently pay significant fees for terrestrial telecom spectrum acquired through competitive bidding.
Ambani and Mittal, who are also eyeing their entry into the satellite broadband sector, argue that administrative allocation could favor global companies that avoid auction fees, creating an uneven playing field.
The government’s decision is supported by the new Indian Telecom Act, which classifies the satellite communications spectrum under ‘Schedule 1’, making allocation mandatory instead of auctioning. This classification is intended to align with international standards and simplify satellite operations.
For Starlink, this decision facilitates their entry into the Indian market. With a government-determined pricing model, Starlink and other global providers can expect a more predictable cost structure, which will benefit their rollout plans.
India’s decision is expected to boost competition in the satellite broadband sector, with foreign players such as Starlink and Amazon’s Project Kuiper seeing a clear path to market entry. This could lead to expanded internet access in underserved areas, increasing competition between local and foreign players in India’s digital landscape.
With inputs from PTI