Mukesh Ambani’s Reliance has urged India’s telecom regulator, the Telecom Regulatory Authority of India (TRAI), to reconsider its decision to allocate satellite spectrum administratively, instead advocating for an auction process. This development pits Reliance Jio against Elon Musk’s Starlink, as the two giants clash over how India should distribute its satellite broadband spectrum.
Key Points of the Dispute:
- Auction vs. Administrative Allocation: Reliance argues that administratively allocating satellite spectrum is “discriminatory,” with Reliance policy executive Ravi Gandhi asserting it’s an unfair method of assigning a valuable government resource. In contrast, Starlink supports the administrative approach, which aligns with global norms and eases market entry for foreign players.
- Impact on Competition: Analysts believe a spectrum auction would raise the costs of entry, potentially deterring foreign competitors like Starlink from entering the Indian market due to high financial commitments.
- Broadband Market Stakes: Reliance Jio, which has invested heavily—$19 billion in prior spectrum auctions—is concerned that Starlink’s low-cost satellite broadband services could pull away Jio’s broadband customers and eventually its mobile data clients.
Broader Context and Implications:
India’s telecom minister Jyotiraditya Scindia has leaned toward administrative allocation but awaits final recommendations from TRAI. The regulator’s decision could significantly shape the future landscape of India’s satellite broadband market, setting a precedent for how spectrum is distributed in one of the world’s most competitive telecom markets.
This dispute also underscores the ongoing rivalry between Ambani and Musk. While Ambani has previously attracted customers with zero-cost data plans, Musk’s Starlink uses similarly disruptive pricing strategies, as seen in Kenya, where Starlink launched at $10 per month—well below U.S. prices, sparking complaints from local telecom providers.
The coming weeks will be crucial as TRAI’s recommendations could determine whether Starlink and other foreign entities gain a competitive edge or whether Reliance’s push for an auction prevails, potentially raising barriers for international entrants.
