"We are Committed to Providing the People of India with the Highest Quality of Service we can"- Musk

Nitin Konde, Varun Bhardwaj

Oct 18, 2024 — 2 min read

Elon Musk Commits to Delivering Highest Quality of Service in India

Elon Musk applauded the Indian government's choice to utilise an administrative process instead of an auction to distribute satellite broadband spectrum. Starlink, Musk's satellite internet startup, is expected to benefit from this action as it eliminates the need for competitive bidding to obtain spectrum in the nation.

Jyotiraditya Scindia, India's Minister of Telecom, stated at a New Delhi event that the telecom regulator will decide pricing and that spectrum allocation will take place administratively. Scindia stressed that this strategy is in line with global norms, saying, "If you do decide to auction it, then you will be doing something that is different from the rest of the world."

The choice was made in the midst of discussion about how satellite spectrum should be distributed in India, which is essential for the launch of satellite-based internet services there.

Musk stated on X (previously Twitter) that he will try his hardest to use Starlink to help the people of India. In addition, he observed that the International Telecommunication Union (ITU), a United Nations agency responsible for satellite communications, has long designated this form of spectrum for shared use among satellite operators and that an auction for the spectrum would be unprecedented.

Reliance Still Pushing for Auction

Even if Musk's Starlink is in favour of administrative allocation, India's telecom behemoths are against the move. The billionaire Mukesh Ambani's company Reliance had previously contested the regulatory consultation procedure, claiming that an auction is required to guarantee fairness. They think satellite companies, particularly those hoping to service affluent urban areas, ought to buy spectrum just like regular telecom companies.

The auction approach was also supported by Sunil Mittal, the chair of Bharti Airtel and co-chair of Eutelsat. Speaking at the event in New Delhi, Mittal stated that satellite businesses that want to enter the urban market should purchase spectrum in the same way that telecom companies do.

The ITU's criteria for shared spectrum allocation for satellites are widely adhered to globally, thereby endorsing the position of Musk and other satellite operators. But domestic telecom giants like Airtel and Reliance are worried about keeping the playing field equitable. They contend that, given the rising demand for satellite internet services in cities, auctioning will bring justice and transparency to the distribution of spectrum.

OneWeb, an Airtel-partnered subsidiary of Eutelsat, had also voiced requests in its representations to the Indian government earlier in 2023 regarding the auctioning of satellite spectrum. Global satellite providers, such as Starlink and Amazon's Project Kuiper, meanwhile, maintain their support for administrative distributions since they see spectrum as a common resource.