According to the letter seen by Reuters, Reliance opposed the TRAI decision to allocate the home satellite broadband spectrum, a market that is poised to grow at a pace of 36% a year to reach $1.9 billion by 2030.
The letter mentioned that the company argues that the regulator has wrongly concluded that the broadband spectrum should be allocated administratively rather than through auction. Reuters further stated that the methodology of giving spectrum licenses for satellite services in India has been disputed since last year.
Face Off Among The Major Players
This TRAI decision further intensifies the fight among the major players, including Elon Musk’s Starlink, Amazon’s Project Kuiper, and Mukesh Amabani’s Reliance. According to Reuter, Starlink and Amazon favour administrative allocation, whereas Reliance argues for implementing auctions in broadband spectrum allocation.
The ongoing dispute revolves around an interpretation of Indian law, which some in the industry claim facilitated the spectrum allocation last year in line with Musk’s preferences. However, according to industry sources on Sunday, Reliance contends that no specific provisions exist for satellite broadband services intended for individual or home users.
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Moreover, in a letter to India’s Telecom minister, Jyotiraditya Scindia, a Reliance senior official, mentioned, “TRAI seems to have concluded, without any basis, that spectrum assignment should be administrative.”
What About Starlink Launch?
Tesla CEO Musk is eager to introduce Starlink in India, but the unresolved spectrum allocation issue remains a key hurdle. Further, Starlink maintains that administratively allocating licenses aligns with global practices. Conversely, Reliance contends that an auction process is essential to ensure a level playing field, expressing concerns that foreign entities might otherwise offer voice and data services, competing with established domestic providers.
