India Allocates Spectrum for Satellite Broadband, Boosting Starlink and Global Providers

Summary:
The Indian government has decided to allocate spectrum for satellite broadband, benefiting companies like Elon Musk’s Starlink. This decision adopts an assignment-based model aligned with international standards, in contrast to demands for an auction system from local telecom giants like Reliance Jio and Bharti Airtel. The move, supported by the new Telecom Act, is expected to enhance competition, streamline satellite operations, and pave the way for greater internet access in underserved areas.

The Indian government’s decision to allocate spectrum for satellite broadband services is a significant boost for companies like Elon Musk’s Starlink and other global satellite providers. Communications Minister Jyotiraditya Scindia announced that India will adopt an assignment-based approach for satellite spectrum, in line with international standards set by the International Telecommunications Union (ITU). This move goes against the requests of Indian telecom giants.

Reliance Jio and Bharti Airtel, led by Mukesh Ambani and Sunil Mittal, have voiced concerns, arguing that satellite spectrum should be auctioned to ensure fair competition. They assert that administrative allocation could give global companies an advantage by allowing them to bypass auction costs, thus creating an uneven playing field. Both telecom leaders are also eyeing the satellite broadband market.

Supporting this decision, India’s new Telecom Act classifies satellite communication spectrum under “Schedule 1,” mandating its allocation rather than auction. This classification aims to align with global standards and streamline satellite operations.

For Starlink and similar companies, this move provides a clearer pathway for market entry into India. The government-determined pricing structure is expected to offer a more predictable cost model, aiding their expansion plans. Overall, this decision is likely to intensify competition in India’s satellite broadband market, fostering expanded internet access in underserved regions and challenging both local and international players in the digital space.

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