India's satellite broadband bBattle: Mukesh Ambani challenges Elon Musk, questions TRAI's stance

The satellite broadband spectrum battle in India intensifies as Mukesh Ambani's Reliance Industries confronts the Telecom Ministry's preference for administrative allocation over an auction. Reliance asserts that there are no provisions for satellite services targeting individual users, while Elon Musk's Starlink favors the administrative method.

Dispute Over Allocation Methods

New Delhi: The ongoing conflict over satellite broadband spectrum allocation in India has escalated with Reliance Industries (RIL) Chairman Mukesh Ambani challenging the telecom regulator's preference for administrative allocation instead of an auction. Ambani has written to the Telecom Ministry, arguing that the Telecom Regulatory Authority of India (TRAI) has prematurely decided on administrative allocation, according to Reuters.

This dispute has pitted Reliance against Elon Musk's Starlink, which supports administrative allocation. The allocation method has been contentious in India since last year, with the market projected to grow 36% annually, reaching $1.9 billion by 2030, according to Deloitte.

Legal Interpretations and Industry Concerns

The controversy centers around different interpretations of Indian law, which some industry insiders believe facilitated last year's spectrum allocation favoring Musk's interests. Reliance, however, maintains that no existing provisions support satellite broadband services aimed at individual or home users, as stated by industry sources on Sunday.

Public Consultation and Calls for Reassessment

TRAI is currently holding a public consultation on the matter. Kapoor Singh Guliani, Reliance's senior regulatory affairs official, has already requested that the process be restarted. "TRAI seems to have concluded, without any basis, that spectrum assignment should be administrative," Guliani wrote in a letter.

Reliance Jio, India's leading telecom provider with 480 million users, has asked TRAI to amend the consultation paper to ensure a level playing field. "It is imperative upon TRAI to also consult on the methodology of assignment," Reliance Jio said in a statement to Reuters on Sunday.

Government's Role and Industry Impact

A senior TRAI official told Reuters that due process is being followed and invited Reliance to provide feedback during the consultation period. The regulatory body's recommendations will influence the government's decision on the issue.

Elon Musk is eager to launch Starlink in India, but the final decision on spectrum allocation remains a critical hurdle. Starlink argues that administrative licensing aligns with global trends, while Reliance contends that an auction is necessary to ensure fair competition, especially as foreign players could offer voice and data services competing with traditional operators.