Ambani's Reliance lobbies for India satellite spectrum auction in new clash with Musk's Starlink (updated)

Ambani Orgochem

08/11/2024 11:49

(Recasts with details, comments from executives)
    By Munsif Vengattil and Aditi Shah
       BENGALURU, Nov 8 (Reuters) - Mukesh Ambani's Reliance
pressed India's telecom watchdog on Friday to reconsider its
plan not to auction satellite spectrum but to simply allocate
it, in a fresh clash with Elon Musk's Starlink.
    India's telecoms Minister Jyotiraditya Scindia last month
said the government would allocate spectrum administratively in
line with global trends but a final notification on how spectrum
is given out will come after the telecom watchdog TRAI gives its
feedback.
    Musk's Starlink has expressed interest in launching in India
following a successful launch in Africa which left local players
bruised by low broadband prices and favours the government's
approach to allocating spectrum.
    Ravi Gandhi, a top Reliance policy executive, urged the
telecom regulator TRAI on Friday, however, to review the
decision, noting in an open house discussion hosted by TRAI that
the move to allocate spectrum administratively is "the most
discriminatory method of assigning any kind of government
resource".
    Starlink India executive Parnil Urdhwareshe on the other
hand said India's allocation plan was "forward-looking".        
    Billionaire Ambani runs India's biggest telecom company,
Reliance Jio. Analysts say a spectrum auction, requiring much
more investment, would likely deter foreign rivals.    
    The TRAI's recommendations, which will be formed over coming
weeks, will be critical in deciding the future course of how
satellite spectrum is doled out.
    Reliance, which has dominated India's telecom sector for
years, is concerned that after spending $19 billion in airwave
auctions it risks losing broadband customers to Musk, and
potentially even data and voice clients later as technology
advances, Reuters previously reported.    
    The methodology of giving out spectrum for satellite
services in India has been a topic of contention between the
billionaires.
        Musk's Starlink, a unit of SpaceX, has 6,400 active
satellites orbiting earth to provide low-latency broadband to 4
million customers.
    Ambani once gave data for free on his mobile plans, but Musk
is no stranger to such tactics.
    In Kenya, Musk priced Starlink at $10 per month, versus $120
in United States, with rental plans available for higher
hardware cost. Kenya's Safaricom in July complained to local
regulators, calling for players like Starlink to be required to
partner with mobile networks, and not operate independently.   

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Musk's win on India satellite spectrum raises prospect of price
war with Ambani    https://www.reuters.com/technology/space/musks-win-india-satellite-spectrum-raises-prospect-price-war-with-ambani-2024-10-17/
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 (Reporting by Munsif Vengattil, Aditi Shah and Aditya Kalra;
Editing by Lincoln Feast and Elaine Hardcastle)
 ((munsif.vengattil@thomsonreuters.com;))