Elon Musk Lauds India’s Satellite Spectrum Allocation Decision as ‘Promising’

Elon Musk has welcomed India’s decision to allocate spectrum for satellite broadband services rather than auctioning it, a move that aligns with international standards and could favor his Starlink venture. This decision, announced by Communications Minister Jyotiraditya Scindia, has garnered Musk’s approval, who responded with a single word, “Promising,” to a post on X (formerly Twitter) highlighting the policy.

Alignment with International Standards and ITU Guidelines

The post, shared by a user named Alex, referenced Scindia’s interview with the Press Trust of India, where he confirmed that satellite spectrum in India would be allocated in line with International Telecommunications Union (ITU) guidelines, rather than auctioned. Musk’s response indicates his support, suggesting it may smooth Starlink’s entry into the Indian market.

India’s approach follows global norms, where satellite spectrum is typically allocated by government assignment rather than through competitive auctions. Scindia noted, “No country auctions satellite spectrum,” reinforcing that the allocation method under the Telecom Act of 2023 aligns with ITU recommendations.

Concerns Raised by Indian Telecom Giants

This decision, however, has stirred concerns among Indian telecom giants like Jio and Airtel, led by Mukesh Ambani and Sunil Mittal. The telecom leaders argue that auctions bring market transparency, given their substantial investments in terrestrial spectrum. For them, the satellite broadband segment is key to India’s digital future, and an allocation-based model could give international players like Starlink an advantage, reducing entry costs.

Potential Benefits for Starlink and Indian Consumers

For Starlink, India’s high internet demand makes it an attractive market. A government-determined price rather than auction could enhance affordability for consumers and streamline Starlink’s market entry. However, pricing remains a question, as Starlink’s costs are often higher than typical broadband services. Musk’s support for the allocation model suggests a strategic opportunity for Starlink, though adjustments to pricing may be necessary to appeal to Indian consumers.