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Ambani’s Reliance pushes back on India’s satellite spectrum allocation

ByYasmeeta Oon

Oct 14, 2024

Ambani’s Reliance pushes back on India’s satellite spectrum allocation

Indian billionaire Mukesh Ambani’s Reliance has raised objections to India’s telecom regulator, claiming the decision to allocate satellite broadband spectrum without an auction is flawed, according to a letter obtained by Reuters. This move intensifies an ongoing dispute between Reliance Jio and Elon Musk’s Starlink over how spectrum should be distributed for home satellite broadband services.

The issue revolves around the regulatory interpretation of India’s spectrum allocation policy. Musk’s Starlink, along with Amazon’s Project Kuiper, supports an administrative allocation model. However, Ambani, Asia’s richest man and head of Reliance Jio, insists that the spectrum should be auctioned. Reliance argues that no provisions exist for allocating spectrum for individual or home satellite broadband users, a point that has been debated within the industry since last year.

India’s telecom regulator, TRAI, has been conducting a public consultation on the matter, but in a private letter dated October 10, Reliance urged the process to be restarted. The letter, penned by Reliance’s senior regulatory official Kapoor Singh Guliani, criticized TRAI for allegedly pre-determining that spectrum allocation should follow an administrative route. Guliani stated that TRAI had “pre-emptively interpreted” the outcome without sufficient justification.

Reliance Jio further emphasized the need for fairness, arguing that the consultation process must consider the methodology of spectrum assignment to ensure a “level playing field.” The company expressed concerns that TRAI’s consultation paper referenced Indian laws mandating spectrum allocation without proper studies. In its letter to India’s telecoms minister Jyotiraditya Scindia, Reliance called for amending the paper to reflect alternative approaches.

A senior official at TRAI responded, asserting that the consultation process was following due protocol, and Reliance was invited to provide input during the consultation period. The recommendations from TRAI will inform the government’s ultimate decision on how spectrum is distributed for satellite broadband services.

Elon Musk, eager to expand Starlink in India, has been pushing for administrative allocation, arguing it aligns with international trends. In contrast, Reliance continues to advocate for an auction, warning that foreign satellite service providers could potentially compete with local telecom operators by offering voice and data services, adding more complexity to the debate.


Featured Image courtesy of ET Edge Insights

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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