Elon Musk takes on Ambani over satellite spectrum allocation in India

The disagreement centres around whether satellite broadband spectrum should be auctioned or administratively allocated in India

Starlink CEO Elon Musk has said that opting to auction satellite broadband spectrum in India, rather than allocating it administratively, would be an "unprecedented" move. His comments position him against Mukesh Ambani's perspective on the matter, as reports indicate that Ambani's Reliance Industries has lobbied for the auction route.

The disagreement centres on whether the spectrum should be auctioned or allocated administratively, with both sides presenting interpretations of international and Indian regulations.

Musk expressed his opposition to India’s potential move to auction satellite broadband spectrum in a post on his social media platform X, which he acquired two years ago.

Musk argued that the spectrum in question has long been designated by the International Telecommunication Union (ITU) as shared satellite spectrum, advocating that its allocation should be managed "rationally, efficiently, and economically."

“That would be unprecedented, as this spectrum was long designated by the ITU as shared spectrum for satellites,” Musk wrote in response to a news report on Ambani.

Administrative allocation of spectrum

Starlink and other global players, such as Amazon’s Project Kuiper, are advocating for administrative allotment—a system where spectrum is assigned without an auction. They argue that this method aligns with international best practices and would support the rapid development of satellite broadband services in India.

Auctioning of spectrum

Reports have emerged that Reliance sent a private letter to the Telecom Regulatory Authority of India (Trai) on October 10, challenging the regulator's position and urging a fresh start to the consultation process. This letter has not been made public.

Reliance claimed that Trai had "pre-emptively interpreted" Indian laws in favour of administrative allocation without fully consulting the industry.

Reliance argued that this approach goes against established norms in the telecom sector. The company further asserted that the allocation method must be reviewed to ensure a level playing field, especially since international companies like Starlink could offer services competing directly with traditional telecom providers.

Trai is currently conducting a public consultation on the issue. The stakes are high, given the massive potential of India's satellite broadband market. Deloitte has projected the sector to grow by 36 per cent annually, reaching an estimated $1.9 billion by 2030, as reported by Business Standard.

This dispute is more than just a corporate rivalry; it raises broader questions about how limited natural resources like spectrum should be managed. This is especially relevant as more international companies enter domestic markets. India, as a member of the ITU, is bound by its treaty, which advocates for spectrum allocation that promotes efficiency and economic fairness.