2024-11-08 11:29:53 :
Elon Musk supports India’s recent decision to allocate spectrum for satellite broadband rather than auction it. The approach outlined by Communications Minister Jyotiraditya Scindia follows global norms. In response to a post on X (formerly Twitter) discussing the announcement, Musk responded with just one word: “Hopeful.”
User Alex’s post read: “News: @Starlink India’s Communications Minister Jyotiraditya Scindia today said in an interview with Press Trust of India that satellite broadband spectrum will be allocated instead of telecom tycoon Mukesh Ambani ) and Sunil Mittal (Sunil Mittal) sought the auction. Musk’s response showed his support for India’s move, which could make it easier for Starlink and other satellite providers to enter the Indian market.
India’s choice is in line with International Telecommunication Union (ITU) standards that discourage spectrum auctions for satellite services. Scindia emphasized that the country has included satellite spectrum in “Schedule 1” of the new telecommunications law, making government allocation mandatory.
A blow to India’s telecom giants?
The policy shift is a blow to Indian telecom giants Jio and Airtel, led by Mukesh Ambani and Sunil Mittal, who have been pushing for terrestrial-like networks of auction. They believe the auction promotes fair competition, especially since they have invested heavily in terrestrial spectrum.
Both Jio and Airtel believe satellite broadband is critical to India’s digital expansion. However, the government’s distribution strategy may provide an easier path for international players like Starlink that are seeking licenses to operate in India.
India is an important growth market for Starlink, with high demand for internet connectivity. Government-set pricing (rather than auction-based pricing) could lower the cost of entry, potentially making Starlink services more affordable for Indian consumers. If Starlink’s pricing model in India mirrors its global structure, it could be one of the most expensive internet options in the country. It remains to be seen whether Musk plans to adjust the price to attract Indian users.
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