Mukesh Ambani vs Elon Musk: Big decision by govt on satellite network, set to heat up competition as Ambani calls for…, Musk backs…

There is growing anticipation surrounding the satellite network, and the government has issued a significant statement on the satellite spectrum. In the Lok Sabha, Union Minister of State for Communications, Pemmana Sani Chandrashekhar, shared key information on the subject. He said that the spectrum allocation would follow administrative processes and may even be assigned without an auction. Under the new telecom act, decisions will be made in the interest of the country’s citizens, considering both economic and technical factors, to allocate the spectrum in the best possible way.
The Telecom Department has sent a reference to telecom regulators to seek guidance on spectrum pricing and licensing matters. Recommendations have been given to satellite service providers, and the Minister also noted that “TRAI is expected to send its recommendations to DoT.” This statement comes amid a global conversation about satellite networks, with satellite companies also considering the issue.
Elon Musk vs. Jio: Battle over satellite spectrum allocation
All the major companies are now at odds over the satellite spectrum allocation process. Elon Musk’s Starlink and Amazon’s Kuiper are also involved in this battle, alongside Indian telecom giants like Jio, Airtel, and Vodafone. These companies are actively offering their suggestions on how the spectrum should be allocated. Musk has been opposing the current system, while Reliance Jio advocates for the use of auctions in the spectrum allocation process. India’s top telecom companies are pushing for a fair and equal treatment in the spectrum distribution.

Competition from Starlink and Amazon

Companies like Starlink and Amazon are aiming to provide their services in urban areas, driven by several reasons. In these regions, they will face direct competition from established telecom giants like Jio and Airtel. However, reports suggest that Starlink’s services are currently quite expensive, whereas Jio and Airtel are offering more affordable internet options, giving them an edge in the cost-sensitive market.
Why most countries prefer not to hold auctions

Union Communications Minister Jyotiraditya Scindia clarified in October that the spectrum for satellite communication (satcom) would be allocated “administratively” instead of through an auction, which had been proposed by Reliance Jio earlier that month. This decision was seen as a win for some of the company’s major competitors, particularly Elon Musk’s Starlink. However, the reality is that auctioning satellite spectrum is impractical, as unlike terrestrial spectrum used for mobile communication, satellite spectrum has no national boundaries. Due to its international nature, satellite spectrum is managed and coordinated by the International Telecommunication Union (ITU), a specialized agency of the United Nations (UN).