India’s Telecom Minister Jyotiraditya Scindia announced that the government would allocate the satellite communication (satcomm) spectrum through the administrative procedure and not by means of auction. This decision was formulated within hours of the announcement by Starlink CEO and owner of X (formerly Twitter), Elon Musk. Musk had condemned the auction plan backed by major telecom giants like Jio and Airtel. Musk has welcomed the announcement, appreciating the commitment to serving the people of India with Starlink services.
Musk’s response reflected the sentiments expressed by many in the satellite communication industry, who considered this decision a boon to enhance broadband access across the length and breadth of India. “Much appreciated! We will do our best to serve the people of India with Starlink,” tweeted Musk. The comments certainly highlight a growing interest in satellite technologies in India as the country tries to close the digital divide in rural and underserved regions.
Earlier this week, Jio and Airtel urged the government to hold a transparent auction for the allocation of satellite spectrum, saying it should be like traditional telecom service auctions. Jio said satellite companies must be allowed to bid for spectrum, to ensure fair competition. Musk called this demand “unprecedented,” which created a flashpoint of tension between traditional telecom giants and new-age satellite service companies.
Minister Scindia explained that the administrative allocation of spectrum is consistent with global practices, arguing, “Satellite spectrum across the world is allocated administratively.” Reassuring stakeholders that there will not be an auction, he also mentioned the spectrum will attract a fee. The pricing mechanism will be framed by the Telecom Regulatory Authority of India (TRAI), empowered to set the guidelines for administrative pricing.
