Musk's Starlink Satellite Internet Application Under Review: Telecom Minister

Amid the high-stakes battle over satellite internet between Reliance Jio and Elon Musk's Starlink, India's Minister of Communications, Jyotiraditya Scindia, has stated that spectrum allocation will provide consumers with more choices.

"My job as telecom minister is to make sure that you have as many choices as possible," Scindia said in an interview with Reuters.

He also told the news agency that the government is still reviewing licence applications for launching satellite broadband services by Starlink and Amazon-owned Project Kuiper.

In September last year, the Telecom Regulatory Authority of India (TRAI) floated a consultation paper on spectrum allocation for certain satellite-based commercial communication services. The regulator revised its earlier stance, favouring administrative allocation of spectrum rather than auctioning it, as has been done for 3G, 4G, and 5G.

Later, Scindia said that, in line with global trends, the government would allocate spectrum administratively. However, a final notification on spectrum allocation will be published after TRAI submits its recommendation.

Also Read: Mukesh Ambani vs Elon Musk: War Over Satellite Spectrum Intensifies as Jio Lobbies Hard for Auction

Reliance Jio Vs Starlink

The decision dashed Reliance Jio's hopes, as the company had expected the government to continue its spectrum auction policy.

Reportedly, this decision triggered a lobbying effort by Mukesh Ambani-owned Reliance Jio to urge TRAI to reconsider. Ravi Gandhi, a senior Reliance policy executive, criticised the move, calling administrative allocation "the most discriminatory method of assigning any kind of government resource."

India is the world's second-biggest telecom market after China, with over 42 million broadband internet users and 904 million 4G and 5G network users. Reliance Jio dominates this sector with a big chunk of the market. It initially gained users by offering free data and calling services.

According to a Reuters report, Reliance Jio is now concerned about losing broadband customers to Starlink. Musk's Starlink is known for aggressively taking market share by offering cheaper prices for its services. Furthermore, it already has thousands of operational satellites providing internet services.

Meanwhile, Reliance has partnered with Luxembourg-based SES Astra to provide satellite internet products.