In a letter obtained by Reuters, Indian billionaire Mukesh Ambani’s Reliance escalates its dispute with Elon Musk’s Starlink. The company claims the telecom regulator wrongly decided that home satellite internet spectrum should be allocated instead of auctioned.
Controversy has surrounded the process of allocating spectrum for satellite services in India since last year. Deloitte projects the market will grow 36% annually, reaching $1.9 billion by 2030.
Ambani, Asia’s richest person and head of Reliance Jio, supports an auction process. In contrast, Musk’s Starlink and international competitors like Amazon’s Project Kuiper favor administrative allocation.
The present disagreement concerns how Indian law should be interpreted, which some in the business claim made it possible for Musk to have his desired spectrum allotted last year.
However, Reliance contends that no plans exist for home or individual customers of satellite broadband, according to industry sources on Sunday.
In a private letter dated October 10, Reliance requested restarting the process. The letter, seen by Reuters, claims that the telecom regulator TRAI “pre-emptively interpreted” allocation as the best course of action. TRAI is hosting a public consultation.
In a letter to Jyotiraditya Scindia, India’s minister of telecoms, Reliance’s senior regulatory affairs official Kapoor Singh Guliani stated, “TRAI seems to have concluded, without any basis, that spectrum assignment should be administrative.”
LEVEL PLAYING FIELD
Reliance argued in its letter that TRAI stated in its consultation document that Indian rules require the distribution of spectrum for such services without carrying out any studies.
Reliance Jio told Reuters in a statement on Sunday that “we have requested (the) TRAI to amend the consultation paper” in order to guarantee fair competition. The company also stated that “it is imperative upon TRAI to also consult on the methodology of assignment” of spectrum.
Due process is being followed, according to a senior TRAI official who stated on Sunday. Reliance is welcome to provide input throughout the consultation time.
The government’s decision on the subject will be based on the watchdog’s recommendations.
Musk, the CEO of Tesla, is eager to introduce Starlink in India, but a final decision about the distribution of spectrum is still up for debate.
According to Starlink, the administrative licensing process follows an international pattern. Reliance asserts that an auction is necessary to ensure fair competition. Reuters reports that foreign companies may compete with established ones by offering voice and data services.
With 480 million members, Jio from Reliance is the top telecom provider in India.
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