Two of the world’s wealthiest individuals, Elon Musk and Mukesh Ambani, are preparing for a high-stakes showdown over India’s satellite broadband sector – a growing market that promises to change the way millions of Indians use the internet in the country.
To be sure, the Indian government recently decided to allocate satellite spectrum for broadband services administratively and bypass the traditional auction model in which telecom companies bid for airwaves.
However, the move to allocate satellite spectrum without an auction has sparked controversy. Ambani’s Reliance Jio, which is the leading telecom provider in India, has been vocal in opposing this decision/
So far, Jio has argued that auctions bring fairness and transparency. It is important to note that the company has invested billions in purchasing airwaves through competitive bidding in the past. And therefore, it believes that the administrative allocation will be a threat to a level playing field.
Musk, on the other hand, is backing the government’s decision. His Starlink service, which already operates in over 100 countries, has long advocated for administrative allocation on the back of global precedents. He even criticized the auction system arguing that it would raise costs and slow down innovation in satellite internet, especially in a country where affordability is key.
Competing Technologies
At the heart of the battle is the technology each billionaire is backing. Starlink’s low-Earth orbit (LEO) satellites, positioned between 160 and 1,000 kilometers above Earth, promise faster internet speeds and low latency. The company has over 6,400 satellites in orbit and a significant subscriber base globally. However, Starlink has faced delays in launching its services in India due to regulatory hurdles.
In contrast, Ambani’s Reliance Jio has partnered with SES Astra, a Luxembourg-based satellite operator that uses medium-Earth orbit (MEO) satellites, positioned at a much higher altitude. MEO satellites are more cost-effective, though they may offer slower speeds compared to LEO satellites.
Also Read: SpaceX Launches Starlink Satellites on ‘American Broomstick’ and Lands Rocket at Sea
The Stakes in India
India’s satellite broadband market is still nascent but growing. A report by ICRA estimates that satellite internet subscribers in India could reach 2 million by 2025 on the back of the demand in remote and rural areas where traditional internet infrastructure is limited. Currently, nearly 40% of India’s population remains without internet access, particularly in rural regions.
What’s Next?
While the Indian government defends its decision to adopt administrative allocation, citing alignment with international practices, the final word on spectrum pricing and allocation remains undecided.
