India Chooses Administrative Allocation for Satellite Spectrum

Aakhir Tak – In Shorts

• The Indian government chose administrative spectrum allocation over auctions.
• Elon Musk opposed Reliance Jio’s demand for an auction, prompting the decision.
• Telecom Minister Jyotiraditya Scindia stated it aligns with global standards.

Aakhir Tak – In Depth

The Indian government has decided to adopt the administrative method for satellite spectrum allocation, rejecting the auction route favored by billionaires like Mukesh Ambani. This decision followed objections from Elon Musk, CEO of Starlink, who opposed Reliance Jio’s demand for an auction. Musk argued that satellite spectrum should be allocated based on international standards set by the International Telecommunication Union (ITU), which views satellite spectrum as shared and non-auctionable.

Ambani’s Reliance Jio and Airtel’s Sunil Mittal pushed for an auction to ensure a level playing field for telecom operators. However, Telecom Minister Jyotiraditya Scindia clarified that India is adhering to global practices, with satellite spectrum allocated administratively.

Musk publicly criticized the idea of an auction, arguing that it would be unprecedented in the industry. He emphasized that Starlink should have a fair opportunity to provide internet services in India. Reliance Jio, on the other hand, stated that satellite companies should be subject to the same regulations as telecom operators.

Ultimately, the government decided on administrative allocation, with pricing to be determined by the Telecom Regulatory Authority of India (TRAI) to ensure fairness. This decision is expected to boost India’s satellite broadband market, projected to grow to USD 1.9 billion by 2030.

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