India’s government on Tuesday said it will allot spectrum for satellite broadband administratively and not via auction, hours after Elon Musk criticized the auction route being sought by rival billionaire Mukesh Ambani as “unprecedented”.
In what is seen as a battle between billionaires, the methodology of awarding spectrum for satellite services in India – a market set to grow 36% a year to reach $1.9 billion by 2030 – has been a contentious issue since last year.
Musk’s Starlink argues administrative allotment of licences is in line with a global trend, while India’s Reliance, led by billionaire Mukesh Ambani, says an auction is needed to ensure a level playing field and as there are no provisions in Indian law on how individuals can be provided satellite broadband services.
Telecoms Minister Jyotiraditya Scindia said during a New Delhi event that the spectrum will be allocated administratively in line with Indian laws, and its pricing worked out by the telecom watchdog.
“If you do decide to auction it, then you will be doing something which is different from the rest of the world,” he said.
Musk was appreciative of the government’s decision, and said on social media platform X, “We will do our best to serve the people of India with Starlink”.
On Sunday, Reuters was first to report that Reliance had challenged the Indian telecom regulator’s consultation process that signals home satellite broadband spectrum should be allocated, not auctioned, calling for it to start again.