Reliance Jio challenges TRAI's spectrum allocation method amidst tensions with Elon Musk's Starlink

Indian billionaire Mukesh Ambani's Reliance has privately contended that the telecom regulator, TRAI, wrongly determined that home satellite broadband spectrum should be allocated by the government rather than auctioned, intensifying a conflict with Elon Musk's Starlink, according to Reuters.

Spectrum Dispute

Reliance argues that no provisions exist for satellite broadband services for individual or home users, a stance supported by industry sources cited by Reuters. The debate over how spectrum for satellite services in India should be distributed has been ongoing since last year.

Industry Positions

Starlink and Peers: Elon Musk's Starlink, along with Amazon's Project Kuiper, supports an administrative allocation.

Reliance Jio: Asia's richest man, Mukesh Ambani, advocates for an auction process, arguing it ensures a level-playing field, especially as foreign players might offer voice and data services competing with traditional providers.

Reliance's Stand

In a private letter dated October 10, Reliance requested TRAI to restart the public consultation process. The letter, addressed to India's telecoms minister Jyotiraditya Scindia by Reliance's senior regulatory affairs official Kapoor Singh Guliani, criticized TRAI for pre-emptively deciding on administrative allocation without any basis. According to Reliance, TRAI's consultation paper misinterpreted Indian laws, indicating that spectrum allocation should be administrative without conducting any necessary studies.

TRAI's Response

A senior TRAI official mentioned that the due process is being followed and Reliance is welcome to provide feedback during the consultation period. TRAI's recommendations will be crucial for the government's final decision on the matter.

Market Outlook

Deloitte projects that India's satellite broadband service market will grow by 36% annually, reaching $1.9 billion by 2030.

Elon Musk's Interest

Tesla's CEO, Elon Musk, is eager to launch Starlink in India, but the unresolved issue of spectrum allocation remains a significant hurdle. Starlink insists that administrative allotment aligns with global trends, while Reliance maintains that an auction is essential for fair competition.

Key Insights

Reliance Jio: India's leading telecom provider with 480 million users.

Consultation Feedback: Reliance has asked for a fresh start to the consultation process, citing misinterpretation of Indian laws by TRAI.

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