Starlink CEO Elon Musk has described India’s move to auction satellite broadband spectrum, rather than allocate it directly, as “unprecedented,” in response to a Reuters report suggesting that billionaire Mukesh Ambani is lobbying for the auction route. The situation has escalated into a clash between the two billionaires, with Starlink advocating for the administrative allotment of licenses, a method that aligns with global trends. In contrast, Ambani’s Reliance argues that an auction is necessary to ensure a level playing field, as foreign players could offer voice and data services, competing directly with traditional telecom operators.
India, as a member of the International Telecommunication Union (ITU) and a signatory to its treaty regulating satellite spectrum, is required to allocate spectrum “rationally, efficiently, and economically” due to its status as a limited natural resource.
Reliance did not provide a comment when requested on Tuesday, though it previously told Reuters that it is “imperative” for the Indian regulator to consult on the methodology of spectrum assignment. Ambani’s latest lobbying efforts have intensified the standoff with Musk, who is seeking to bring Starlink services to India and supports the spectrum allocation approach, where the government assigns spectrum directly to companies.
An Indian government source informed Reuters on Sunday that the regulator is following the necessary consultation processes regarding the issue.
