Indian Gov Proposes Licensing Approach for Satellite Internet Services

In a major win for Elon Musk's SpaceX venture Starlink, the Indian government has proposed granting satellite internet services licenses without an auction process.

As per a Reuters report, the new proposal was included in a draft telecom bill introduced in parliament on Monday. If passed, it would replace the 138-year-old Indian Telegraph Act, which currently governs the telecom sector.

The licensing approach means companies like Starlink, Amazon's Project Kuiper, and British-backed OneWeb would be exempt from bidding for satellite spectrum in an auction. They have been lobbying hard against auctions, arguing it would raise costs and investments compared to licensing in other countries.

In contrast, Reliance Jio argued auctions are needed to ensure a level playing field, as satellite firms could offer voice and data in competition with traditional players.

Supporters of the licensing proposal say it will speed up the rollout of satellite internet services. The satellite industry estimates India's market could grow to $1.9 billion by 2030 as demand surges.