TLDR:
Reliance battles Starlink over spectrum
India weighs auction vs allocation
Musk’s tactics unsettle local players
MUMBAI (The Thursday Times) — Mukesh Ambani’s Reliance is pressing India’s telecom regulator to scrutinise the potential reach of Elon Musk’s Starlink and Amazon’s Kuiper, amid concerns that these satellite giants could disrupt local telecom businesses. The letter from Reliance, marking a last attempt in a months-long struggle, calls for India to auction satellite spectrum rather than allocating it directly, aligning with global trends in telecom. This tug-of-war highlights the clash between established Indian operators and disruptive tech firms aiming to expand their satellite-based broadband services in India.
Reliance has invested heavily in spectrum auctions over the years, totalling an estimated $23 billion, and now carries a massive data load of 15 billion gigabytes each month across the country. The entry of Starlink, with its projected capacity of nearly 18 billion gigabytes, threatens to tap into the same customer base, potentially with far lower upfront costs. Reliance argues that an auction-based model would require significant investment and ensure a level playing field, while administrative allocation could give companies like Starlink and Kuiper a competitive advantage.
A call for scrutiny of satellite giants
Reliance’s letter urges Indian regulators to carefully assess the impact of “mega constellations” like Starlink and Kuiper. With Musk advocating for an administrative allocation and Indian regulators leaning towards that method, Reliance warns that local players could suffer without a more rigorous process. Reliance’s data-driven business model could face steep competition if global satellite broadband providers are allowed to operate in India without similar investment in spectrum.
Local giants face new competition
Reliance Jio, Ambani’s telecom giant, holds a substantial 479 million-strong user base in India. Starlink, on the other hand, has a growing presence globally, with thousands of satellites providing low-latency broadband service to millions. The satellite-based approach promises faster rollout and broader coverage, positioning Starlink as a potentially disruptive force in India’s telecom market. In Kenya, Starlink offered broadband at $10 per month—much lower than the U.S. rate—causing ripples among local operators, and Ambani is wary of similar impacts in India.
Regulatory decisions
India’s telecom regulator is expected to announce its recommendations soon, weighing feedback from local and international players. As Starlink works on gaining security clearances for its satellite broadband services, Musk’s direct entry into the Indian market would mark a new chapter in the country’s tech landscape. Ambani, once known for disruptive tactics himself, finds his position challenged as Musk pushes into a realm previously dominated by established Indian telecoms. This intensifying competition could reshape India’s digital future, with traditional telecoms battling for market share against a wave of new satellite-driven broadband services.
