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Synopsis: Elon Musk has praised India's move to allocate spectrum for satellite broadband instead of auctioning it, a decision expected to benefit his Starlink venture and streamline its market entry. This approach, which aligns with global practices, has faced resistance from telecom giants like Reliance Jio and Bharti Airtel, who argue that auctions foster fair competition and level the playing field for domestic players.
India's choice to allocate satellite broadband spectrum administratively rather than through competitive auctions has drawn international attention, notably from Elon Musk, who expressed support for the move. Communications Minister Jyotiraditya Scindia highlighted that this policy follows global norms, ensuring cost determination by the Telecom Regulatory Authority of India (TRAI). Musk's endorsement, given via a social media post, suggests optimism about the reduced hurdles for Starlink’s entry.
Conversely, leading telecom firms such as Reliance Jio and Bharti Airtel, helmed by Mukesh Ambani and Sunil Bharti Mittal respectively, have lobbied for auctions, citing substantial investments in terrestrial networks and arguing that allocation may disadvantage existing players. As India's satellite broadband market expands, this development has broad implications, potentially lowering Starlink’s entry costs and broadening access to remote areas while intensifying competition for domestic providers.
