Elon Musk and Mukesh Ambani are locked in a bitter contest in India over the allocation of satellite broadband spectrum, which has recently intensified. The conflict lies in whether the Indian government should offer the satellite broadband spectrum through an auctioning system or through administrative means.
Musk, who leads SpaceX and founded Starlink, called the auction plan “unprecedented” and said it violates the ITU’s rules on sharing this spectrum for satellites. He also voiced his concerns on social media postings that came with the need to ensure that the allocation process was logical and well-organised.
While Ambani’s Reliance, Jio has been pushing for an auction system, stating that it will make the field competitive against global players such as Starlink. The truth, according to Jio, is that an auction would ensure that international companies do not capture a monopolistic market in India, which has already seen telecom companies investing in their networks. The risk is high; the satellite broadband market in India is expected to be growing at an average of 36% annually and can reach up to USD 1.9 billion by 2030.
It escalated when Musk replied to a meme of Ambani saying he would call to find out if Starlink could compete in India. After Musk’s comments, the Indian government said it will use administrative means instead of auctions to assign the spectrum, a move that seems to put the balance in Musk’s favour.
Proliferation of Starlink services in the rural areas of India is an example of Musk’s strategy for the development of internet connectivity where it is scarce. On the other hand, Ambani’s Reliance is keen on lobbying for laws that they consider will level the playing field in the expanding market. While this corporate rivalry plays out, it poses pertinent issues on resource management and regulatory policies in the emergent telecom sector in India.
