Elon Musk backs India’s spectrum allocation for satellite broadband: A win for Starlink, a blow to Jio and Airtel?

Elon Musk has backed India’s recent decision to allocate spectrum for satellite broadband instead of auctioning it. This approach, outlined by Communications Minister Jyotiraditya Scindia, follows global norms. Musk reacted with a one-word response, “Promising,” to a post on X (formerly Twitter) discussing the announcement.

The post by user Alex read, “NEWS: @Starlink India’s Minister for Communications Jyotiraditya Scindia said today in an interview with the Press Trust of India that spectrum for satellite broadband will be allocated, not auctioned as sought by telco tycoons Mukesh Ambani and Sunil Mittal.” Musk's response suggests he supports India’s move, which could ease entry for Starlink and other satellite providers into the Indian market.

India’s choice aligns with the International Telecommunications Union (ITU) standards, which discourage spectrum auctions for satellite services. Scindia highlighted that the country has listed satellite spectrum under “Schedule 1” of its new Telecom Act, mandating government assignment.

A blow to Indian telecom giants?

This policy shift is a blow to Indian telecom giants Jio and Airtel, led by Mukesh Ambani and Sunil Mittal, who have pushed for auctions similar to those in terrestrial networks. They argue that auctions foster fair competition, especially as they have invested heavily in the terrestrial spectrum.

Both Jio and Airtel consider satellite broadband crucial for India's digital expansion. However, the government’s allocation strategy may provide an easier path for international players like Starlink, which is seeking an operating license in India.

For Starlink, India is a significant growth market with high demand for internet connectivity. Government-set pricing, instead of auction-based pricing, could reduce entry costs, potentially making Starlink services more affordable for Indian consumers. If Starlink’s pricing model in India mirrors its global structure, it might be among the more expensive internet options in the country. Whether Musk plans to adjust prices to appeal to Indian users remains to be seen.