Elon Musk takes on Ambani over satellite spectrum allocation in India | News

Musk argued that the spectrum in question has long been designated by the International Telecommunication Union (ITU) as shared satellite spectrum, advocating that its allocation should be managed “rationally, efficiently, and economically.”

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

Administrative allocation of spectrum

Starlink and other global players, such as Amazon’s Project Kuiper, are advocating for administrative allotment—a system where spectrum is assigned without an auction. They argue that this method aligns with international best practices and would support the rapid development of satellite broadband services in India.

Auctioning of spectrum

Reports have emerged that Reliance sent a private letter to the Telecom Regulatory Authority of India (Trai) on October 10, challenging the regulator’s position and urging a fresh start to the consultation process. This letter has not been made public.

Reliance argued that this approach goes against established norms in the telecom sector. The company further asserted that the allocation method must be reviewed to ensure a level playing field, especially since international companies like Starlink could offer services competing directly with traditional telecom providers.

Trai is currently conducting a public consultation on the issue. The stakes are high, given the massive potential of India’s satellite broadband market. Deloitte has projected the sector to grow by 36 per cent annually, reaching an estimated $1.9 billion by 2030, as reported by Business Standard.

This dispute is more than just a corporate rivalry; it raises broader questions about how limited natural resources like spectrum should be managed. This is especially relevant as more international companies enter domestic markets. India, as a member of the ITU, is bound by its treaty, which advocates for spectrum allocation that promotes efficiency and economic fairness.

First Published: Oct 15 2024 | 2:55 PM IST