As Elon Musk’s Starlink gears up to launch its satellite broadband service in India, a major rift has emerged between the country’s top telecom companies and the government over spectrum allocation policies. Reliance Jio, Bharti Airtel, and Vodafone Idea (Vi) have strongly opposed the Indian government’s decision to allocate spectrum to satellite communication (satcom) companies on an administrative basis, calling for a level playing field.
Telecom Giants Raise Concerns
The Cellular Operators Association of India (COAI), representing India’s largest telecom providers, has urged the government to reconsider its approach. COAI argues that while terrestrial telecom companies must bid for spectrum through auctions, satcom firms are being granted spectrum for free.
“Satcom should primarily be used to enhance coverage in rural areas, but there should be parity in regulations for both terrestrial and satellite service providers,” said COAI chief S.P. Kochhar. “The Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (TRAI) have not addressed this concern, which could impact investor confidence.”
Elon Musk Applauds India’s Policy
Meanwhile, SpaceX CEO Elon Musk has welcomed the Indian government’s openness to administrative spectrum allocation, calling it a globally accepted standard. Satcom companies argue that bidding for spectrum, which will be shared among multiple players, is unnecessary and makes “zero sense.”
However, India’s telecom giants see this as an unfair advantage. They assert that satellite broadband providers should follow the same service rules as traditional telecom firms, ensuring a level playing field in the industry.
The Satellite Internet Race in India
Starlink’s anticipated entry has intensified competition in India’s broadband market, with companies racing to roll out their own satellite internet services. Reliance Jio is preparing for its Jio Satcom launch, while Bharti Airtel is advancing with its OneWeb service. Amazon’s Kuiper is also set to enter the fray.
Despite opposition from telecom operators, Starlink is poised to become India’s first satellite broadband provider, as per reports. With the Indian government keen on embracing global satellite broadband players, the coming months will likely witness crucial regulatory decisions that could reshape the country’s internet landscape.
