Elon Musk's Starlink may win big in India as govt opts for spectrum allocation in satellite broadband

 Elon Musk's Starlink may win big in India as govt opts for spectrum allocation in satellite broadband

In a significant policy shift, the Indian government has opted to allocate spectrum for satellite broadband services instead of auctioning it. This decision aligns with international standards and benefits global players like Elon Musk’s Starlink.

Elon Musk

The Indian government has announced its decision to allocate spectrum for satellite broadband services, marking a significant win for Elon Musk’s Starlink and similar global satellite companies. Communications Minister Jyotiraditya Scindia revealed that India would adopt an assignment-based approach for satellite spectrum, aligning with international standards set by the International Telecommunications Union (ITU). This goes against demands put forward by Indian telecom giants.


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.

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