Musk Pushes Back on India’s Potential Satellite Spectrum Auction, Calling It “Unprecedented”

Musk Pushes Back on India’s Potential Satellite Spectrum Auction, Calling It “Unprecedented”
Elon Musk, CEO of Starlink, has voiced strong opposition to India’s potential decision to auction satellite broadband spectrum, labeling the move as “unprecedented.” Musk’s reaction follows reports that his rival, billionaire Mukesh Ambani, is lobbying for the auction route—a clash that has ignited tensions between the two business magnates.
Starlink Advocates for Global Trend of Administrative Allocation
Musk’s Starlink, along with other satellite players like Amazon’s Project Kuiper, is pushing for the administrative allocation of satellite spectrum licenses, which they argue aligns with international standards. According to these companies, satellite spectrum is a shared natural resource, and simply allocating it, rather than auctioning it off, would follow the global trend for efficient spectrum management.
Ambani’s Reliance Calls for Auction to Ensure Fair Competition
However, Ambani’s Reliance Industries takes a different stance. The company argues that an auction is essential to ensure fair competition, particularly since foreign satellite service providers could enter the Indian market and compete directly with traditional telecom companies, including Reliance Jio. Ambani has criticized India’s telecom regulator for deciding to allocate satellite spectrum without broader industry consultation, pushing for a fresh review process to ensure fairness.
Musk References ITU Guidelines on Shared Spectrum
In his response, Musk pointed to the International Telecommunication Union (ITU), a UN agency that governs global telecommunication standards. The ITU designates satellite spectrum as shared, advocating for its rational and efficient use. As a member of the ITU, India is bound by its treaty, which supports administrative allocation as the most appropriate method for satellite spectrum distribution.
Musk reiterated that auctioning such spectrum would be a departure from international norms, and therefore, unprecedented.
Reliance Escalates Lobbying Efforts
Reliance’s lobbying efforts have intensified the ongoing dispute with Musk, as both billionaires position themselves for dominance in India’s rapidly growing satellite services market. Musk’s Starlink aims to launch its satellite internet services in the country, and the method by which spectrum is allocated will significantly impact the competitive landscape.
Government’s Role and Market Growth Potential
An Indian government source confirmed that the telecom regulator is following the required consultation process, but the final decision on whether to allocate or auction the spectrum remains to be made. The stakes are high, with the satellite services market in India expected to grow by 36% annually, reaching $1.9 billion by 2030.
A Pivotal Decision for the Future of Satellite Services
The ultimate choice between auction or allocation will set a precedent for satellite spectrum management not only in India but potentially in other nations as well. Musk’s warning underscores the global significance of India’s decision, with implications that could affect the future of satellite broadband access worldwide.