Amid a recent confrontation with Elon Musk, Reliance Jio advocates against TRAI’s distribution mechanism

News Mania / Piyal Chatterjee / 14th October 2024

In a letter obtained by The media , Indian billionaire Mukesh Ambani’s Reliance has intensified a dispute with Elon Musk’s Starlink, claiming that the telecom regulator erred in concluding that home satellite broadband spectrum should be allocated rather than put up for auction. Since last year, the process of allocating spectrum for satellite services in India, a market Deloitte projects would expand 36% annually to reach $1.9 billion by 2030, has been a divisive topic. Ambani, the richest man in Asia and the owner of Reliance Jio in India, is advocating for an auction process, while Musk’s Starlink and international counterparts like Amazon’s Project Kuiper want an administrative allocation.

Some in the business claim that the interpretation of Indian law that is at the center of the present issue cleared the path for Musk’s desired spectrum allocation last year.However, according to industry sources on Sunday, Reliance is claiming that no plans are in place for satellite internet services for individual or residential consumers.

The telecom regulator, TRAI, is holding a public consultation, but Reliance in a private Oct. 10 letter seen by The media  asked for the process to be started afresh as the watchdog has “pre-emptively interpreted” that allocation is the way forward.

“TRAI seems to have concluded, without any basis, that spectrum assignment should be administrative,” Reliance’s senior regulatory affairs official Kapoor Singh Guliani wrote in the letter to India’s telecoms minister Jyotiraditya Scindia.

Reliance argued in its letter that TRAI had stated in its consultation document that Indian laws need spectrum allotment for such services without carrying out any studies.
Reliance Jio told The media  on Sunday that “it is imperative upon TRAI to also consult on the methodology of assignment” of spectrum, adding that “we have requested (the) TRAI to amend the consultation paper” in order to guarantee fair competition. Reliance is welcome to provide input during the consultation session, according to a senior TRAI official who stated on Sunday that due process is being followed. The government’s decision on the issue will be based on the watchdog’s recommendations.

Although a final decision on spectrum allocation is still pending, Tesla CEO Elon Musk is eager to introduce Starlink in India.

According to Starlink, the administrative distribution of licenses follows a worldwide pattern. According to Reliance, an auction is necessary to ensure fair competition because foreign companies may compete with established ones by providing voice and data services, as reported by The media .