Elon Musk and Mukesh Ambani, two global business tycoons, are battling over the allocation method/mode of spectrum for satellite services in India. Reliance Jio, owned by Mukesh Ambani is the largest telecom operator in India. Elon Musk owns the global satcom company Starlink. So what's the fight? Well, it's not a fight between two individuals, but two major companies owned by them. Jio has been vocal about an auction route for the allocation of spectrum, while Starlink wants administrative allocation.
Read More - Jio Prepaid Plan with SonyLIV and ZEE5 Combo and Unlimited 5G
What's interesting here is that the government is siding with Musk-owned Starlink instead of Jio. The reason is that spectrum is given to satellite companies in an administrative manner throughout the globe. So, from the perspective of standardisation of services, the practice can't be any different in India.
Telecom minister Jyotiraditya Scindia has already commented that administrative allocation will happen in India. However, at the moment, TRAI (Telecom Regulatory Authority of India) is still considering what to do here. Elon Musk has backed India's telecom minister's statement. So what's right and wrong here? Unfortunately, we are not qualified enough to take that call. But we can take a look at why Jio doesn't want the administrative allocation.
Read More - Jio Unhappy with TRAI’s Move on Spectrum Allocation for Satcom: Report
Starlink will offer high-speed broadband connectivity to users. This is something Jio is worried about. Jio believes that Starlink will be offering the same set of services and won't have to pay for the spectrum as the telcos do. That would create an uneven playing field for the telecom companies. The telecom operators, including Airtel, want a uniform practice, i.e., an auction for the acquisition of spectrum.
Starlink also offers services in Africa. The telecom operators have approached the regulator in Africa over the predatory pricing of Starlink and asked that Starlink offers services to customers in collaboration with the telcos. Jio doesn't want such a situation in India. The telecom operator has termed the move "discriminatory" if the spectrum is allocated administratively.
