Starlink, Elon Musk’s project, has actively advocated against conducting auctions for satellite internet spectrum.India is suggesting a licensing approach for allocating spectrum for satellite internet services, proposing an exemption from competitive bidding, a favorable development for Elon Musk’s Starlink venture, which has vehemently opposed any auction requirements.
The proposal was included in a new draft bill for the telecommunications sector, which seeks to replace the 138-year-old Indian Telegraph Act that currently governs the sector. The bill was tabled for approval in parliament on Monday.
While Starlink and its global peers like Amazon’s Project Kuiper, and the British government-backed OneWeb would rejoice in the move, it is a setback to Mukesh Ambani, Asia’s wealthiest, who runs Indian telecom giant Reliance Jio.
The foreign firms have been demanding a licensing approach, concerned that an auction by India unlike elsewhere will raise the likelihood of other nations following suit, increasing costs and investments, Reuters had reported in June.
Reliance Jio, country’s biggest telecom operator, however had disagreed and told government that an auction is the right approach, similar to 5G spectrum distribution in India. Foreign satellite service providers could offer voice and data services and compete with traditional telecom players, and so there must be an auction to achieve a level playing field, Reliance had argued.
“By bypassing traditional auctions, this pragmatic method is poised to expedite the deployment of satellite services more efficiently,” said Anil Prakash, Director General at SIA-India, a satellite industry body.
Deloitte predicts that India’s satellite broadband service market will witness an annual growth of 36 percent, reaching $1.9 billion (approximately Rs. 15,807 crore) by 2030.
The telecom bill draft presented on Monday additionally grants the Indian government the authority to suspend or prohibit the use of telecom equipment from certain countries, citing national security concerns.