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Reliance Jio challenges India's spectrum allocation model, opposing Starlink and global rivals

Indian billionaire Mukesh Ambani's Reliance Jio has intensified its efforts to shape how satellite broadband spectrum is distributed in India. In a recent letter, the company criticized the telecom regulator’s decision to support allocation over auctioning of spectrum. This dispute places Reliance in opposition to Elon Musk’s Starlink and other global players like Amazon’s Project Kuiper, who advocate for an administrative allocation model.

Spectrum Policy Dispute

India's satellite broadband market is expected to grow by 36% annually, reaching $1.9 billion by 2030. The core disagreement revolves around whether the spectrum should be auctioned, following traditional telecom industry practices, or allocated administratively, as favored by Starlink and Kuiper.

Reliance argues that Indian telecom laws do not clearly support spectrum allocation for satellite broadband aimed at home users. The company believes an auction-based approach would ensure fair competition by providing all players an equal chance to secure spectrum rights.

TRAI’s Position and Reliance’s Opposition

The Telecom Regulatory Authority of India (TRAI) is holding public consultations to determine the best approach. However, Reliance claims that the regulator has prematurely supported administrative allocation without proper industry consultation. In a letter dated October 10, Kapoor Singh Guliani, Reliance’s senior regulatory affairs official, urged India’s telecom minister, Jyotiraditya Scindia, to restart the process to ensure neutrality.

Reliance criticized TRAI’s stance, arguing that the consultation paper assumes allocation as the default method without conducting relevant studies. The company insists that exploring an auction model is crucial to maintaining a level playing field in the growing satellite broadband sector.

Broader Implications

The decision on spectrum distribution will shape the future of India’s satellite broadband industry. If auctions are adopted, companies like Starlink could face higher costs, potentially slowing their market entry. Conversely, administrative allocation could lower entry barriers, benefiting Starlink, Kuiper, and other new entrants seeking to expand quickly.

The stakes are high, as India’s broadband sector is poised to play a key role in digital infrastructure development. The choice between competitive auctions and administrative allocation will have significant implications for pricing, service availability, and competition in the market.

The ongoing regulatory process will be pivotal in determining the direction of satellite broadband in India. With Reliance advocating for auctions and Starlink backing administrative allocation, the outcome will shape the competitive landscape for years to come. As public consultations continue, industry stakeholders await the final decision, which will determine how spectrum rights are assigned and how quickly satellite broadband services can expand across the country.