India Backs Administrative Satellite Spectrum Allocation Following Musk's Criticism

In a move that favours tech billionaire Elon Musk, the Indian government has announced that it will distribute satellite broadband spectrum through administrative allocation rather than auction, says a report by news agency Reuters. The decision comes amid sharp criticism from Tesla, SpaceX and X owner Musk regarding rival industrialist and Mukesh Ambani's push for spectrum auctions.

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Indian Satellite Communications Market To Hit $2 Billion

The satellite communications market in India, projected to expand at 36 per cent annually and reach $1.9 billion by 2030, has become a battleground for competing business interests. 

The spectrum allocation methodology has sparked intense debate since 2023, with homegrown telecom giants Reliance Jio and Bharti Airtel advocating for auctions, while international players like Musk-owned Starlink and Amazon's Project Kuiper supporting administrative allocation.

Speaking at an event in New Delhi, Telecommunications Minister Jyotiraditya Scindia confirmed the government's stance, stating that spectrum allocation would follow administrative procedures in accordance with Indian legislation, with pricing to be determined by telecom regulators. 

"If you do decide to auction it, then you will be doing something which is different from the rest of the world," he was quoted as saying by the Reuters report.

The announcement drew immediate approval from Musk, who posted on X: "We will do our best to serve the people of India with Starlink."

The decision follows recent developments where Reliance had contested the telecom regulator's consultation process that favoured allocation over auction. 

Starlink's position maintains that administrative allocation aligns with global practices, while Reliance argues that auctions would ensure fair competition and address legal gaps in providing individual satellite broadband services.