NEW DELHI: Maverick American billionaire Elon Musk thanked the govt for clarifying that satcom spectrum will be allotted only administratively – contrary to demand made by local heavyweights Reliance Jio and Airtel for auctions — and said that he looks forward to beginning internet services in the country with his company Starlink.
Musk, whose entry faces stiff opposition from the domestic telecom behemoths who are seeking auctions in line with how they buy their airwaves, appeared unfazed with the lobbying and latched on to the comments from Telecom Minister Jyotiraditya Scindia about administrative allocation.
“Much appreciated! We will do our best to serve the people of India with Starlink,” he said in a post from his handle on X while responding to a user comment on the govt’s clarification on Tuesday.
The issue of how the spectrum needs to be given to satcom players – through auction or administratively – has virtually pitted Jio and Airtel not only against Musk but even against the new telecom law that mandates administrative allocation for satellite airwaves against bidding process which is done in case of terrestrial services.
Scindia was also categorical in his views on the matter, and said that telecom law clearly states that satcom airwaves will not be auctioned. “Spectrum for satellite services will be allocated administratively but that doesn’t mean that it will come without a cost. The cost of spectrum and the formula of allocation will be decided by telecom regulator Trai… Satellite spectrum across the world is administratively allocated. So, India is not doing anything different from the rest of the world… satellite spectrum is a shared spectrum. Now if the spectrum is shared then how can you price it individually?”
The govt’s statement was also supported by the Indian Space Association (ISpA) which, surprisingly, also has Airtel as a member. “We welcome the Telecom Minister for his unequivocal and clear statement on the allocation of spectrum for satellite communication. The govt’s intent — which was defined in the telecom act of 2023 — clearly lays out assignment of satellite spectrum by administrative method which is also a globally-harmonised practice for using of shared spectrum,” ISpA Director General Lt Gen (Retd) Anil Kumar Bhatt said on the sidelines of the India Mobile Congress .
He said the satellite industry is now awaiting the final allocation of spectrum for space at the earliest after Trai’s consultation paper will give its recommendations to the Department of Telecom. “The administrative allocation of spectrum for space is a major step to connect the remote and unserved people of India to the digital economy.”
Jio had been pressing the govt and regulator Trai for a ‘level-playing field’, saying that satellite operators should also be made to buy spectrum in auctions like terrestrial operators do. Its voice was given support by Sunil Mittal at the India Mobile Congress on Tuesday as one of the country’s most-experienced telecom honcho also sought the same methodology. “Satellite operators who want to provide services to urban areas and retail customers indeed need to go through the regular licensing process of any country, and in this case, India, to obtain a license; buy the spectrum; undertake all the obligations, including rollout and security; pay their license fees and taxes and they would be welcomed by the telecom fraternity,” Mittal said in his address where PM Modi was also present.