Elon Musk applauds India's decision: Spectrum allocation favors open access and innovation

Elon Musk seems to have come out on top in a competition against Indian telecom giants Mukesh Ambani and Sunil Bharti Mittal regarding how satellite spectrum should be distributed. This rivalry is part of a larger battle over who will lead the rollout of satellite-based Internet in India—the world’s most-populated country.

Space spectrum is the range of radio frequencies used for communication between satellites and ground stations. These frequencies allow data, such as Internet signals, to be transmitted from space to Earth, enabling such services as satellite Internet, or communication networks.

Mukesh Ambani, Asia’s richest person and head of oil-to-digital giant Reliance Industries, along with Sunil Mittal’s Bharti Airtel, have been urging the Indian government to auction satellite spectrum. They want it to follow the competitive system used in the mobile industry, which they largely control, instead of simply assigning it.

Elon Musk, CEO of SpaceX and owner of the Starlink satellite Internet service, recently posted on his social media platform X, expressing concern over India’s plans to auction satellite spectrum. He called the move “unprecedented”, explaining that the International Telecommunication Union (ITU)—a specialized agency of the United Nations responsible for setting global communication and technology standards.

Its role is to oversee the use of radio frequencies, including satellite spectrum, to ensure that such communication systems as the Internet, mobile networks and satellites operate smoothly across different countries—of which India is a member, had already designated this spectrum to be shared for satellite use. The ITU’s coordination helps prevent interference between countries’ communication systems and promotes international cooperation in technology.

By stating that the ITU had designated the spectrum “shared for satellites”, Musk was emphasising that the ITU had set guidelines allowing multiple satellite operators to use the same radio frequencies. This means that the spectrum is intended to be shared among different satellite services rather than being auctioned off to a single company. Since India is a member of the ITU, it is expected to follow these international rules, which encourage fair access and global collaboration.

Shortly after Musk’s comments, Sunil Mittal expressed his support for auctioning the satellite spectrum. Speaking at a conference in New Delhi, he directly addressed Prime Minister Narendra Modi, who was in the audience. Mittal argued that satellite companies providing services in urban areas should “pay for telecom licences just as everybody else”.

Last week, Mukesh Ambani’s Reliance sent a letter to the telecom regulator and the government, criticizing them for seemingly deciding in advance that satellite spectrum should be allocated, rather than auctioned, according to a letter reviewed by the Financial Times and a source familiar with the situation.

However, on Tuesday (October 15), India’s communications minister, Jyotiraditya Scindia, announced that there were no plans to auction the space spectrum. In response, Elon Musk posted on X, saying, “Much appreciated!” and added that Starlink would do its best to serve the people of India.

Earlier this year, the Financial Times reported that Sunil Mittal and Mukesh Ambani were leading the race to launch satellite Internet services in India, ahead of Elon Musk’s Starlink, which has not yet received the necessary licences. Mittal and Ambani dominate the Indian telecom market and, according to estimates from EY-Parthenon, space-based Internet could become a $1-billion annual revenue opportunity in the country.

A person close to Reliance said they had ample resources and could afford to buy additional spectrum to keep smaller competitors out. He added that, if the spectrum was not auctioned, but allocated, instead, many unwanted players could enter the market.

Late last year, India’s Parliament passed a law permitting the allocation of satellite spectrum, moving away from the usual auction process. In September, the telecom regulator sought input from industry players, giving them until later in October to submit their feedback.

Bharti Airtel, which is planning to launch satellite Internet in partnership with the Anglo-French company, Eutelsat OneWeb, stated that operators providing services to urban areas and retail customers should go through the auction process. A source close to the company said only services targeting unserved communities should be allocated spectrum. This would help create a “level playing field”, especially since Indian telecom operators have already invested “billions of dollars” in building ground-based networks.

Vivekanand Subbaraman, a technology analyst at Ambit Capital in Mumbai, speaking to the Financial Times, said local companies were pushing for consistent rules. They believe that satellite companies should follow the same licensing and spectrum regulations that apply to other telecom operators. However, an auction process would give Indian companies more time to prepare their products for the market.

Last year, Musk informed Modi that he wanted to bring Starlink, which operates over 6,000 low-orbit satellites, to India to help connect remote communities. Musk is also interested in the long-term possibility of setting up a Tesla plant in India, although he cancelled a trip to New Delhi earlier this year to focus on discussions with China.

(The author of this article is a Defence, Aerospace & Political Analyst based in Bengaluru. He is also Director of ADD Engineering Components, India, Pvt. Ltd, a subsidiary of ADD Engineering GmbH, Germany. You can reach him at: girishlinganna@gmail.com)

(Disclaimer: The views expressed above are the author's own and do not reflect those of DNA)