Key Points
- Elon Musk supports India’s decision to allocate spectrum for satellite broadband.
- The decision follows global standards set by the International Telecommunications Union (ITU).
- The policy change could make it easier for Starlink to enter the Indian market.
- Indian telecom giants Jio and Airtel oppose the move and prefer spectrum auctions.
- Government-set spectrum prices could help make Starlink’s services more affordable.
Looma News
Elon Musk has shown his support for India’s decision to allocate spectrum for satellite broadband, rather than auctioning it off. Communications Minister Jyotiraditya Scindia announced the move, which follows international guidelines and aims to speed up the rollout of satellite broadband. Musk responded to a post on X (formerly Twitter) with the word “Promising,” indicating his approval of the new policy.
This decision breaks away from the auction model favored by major Indian telecom companies, including Mukesh Ambani’s Jio and Sunil Mittal’s Airtel. Both companies have pushed for spectrum auctions to encourage competition, especially since they have invested heavily in traditional telecom networks. While they agree that satellite broadband is crucial for India’s digital growth, they are concerned that the government’s approach will give an advantage to global players like Starlink.
India’s decision follows the guidelines set by the International Telecommunications Union (ITU), which advises against using auctions for satellite services. Under the new policy, satellite spectrum will be assigned by the government, rather than being sold through auctions. This could make it easier for companies like Starlink to enter the Indian market, which is a key area of growth for satellite internet services.
For Starlink, this new allocation strategy could lower the cost of entering the Indian market. Government-set pricing for the satellite spectrum might also help keep Starlink’s services more affordable compared to the prices seen in auction-based models. However, if Starlink’s pricing in India mirrors its rates in other countries, it could still be one of the more expensive internet options available. It’s unclear whether Musk will adjust the pricing to better suit Indian consumers.
