Satellite Spectrum: ‘No Auction’ says Union Minister Jyotiradiya Scindia, Elon Musk Reacts

Musk Reacts to Scindia: Communications Minister Jyotiraditya Scindia has said in a recent interview that the spectrum for satellite broadband is going to be allocated and not auctioned.

"Every country has to follow the International Telecommunications Union (ITU), which is the organisation that lays out the policy for spectrum in space or satellites, and the ITU has been very clear in terms of the spectrum being given out on assignment basis. In addition, if you look across the world today, I cannot think of a single country that auctions spectrum for satellite," Scindia said.

What Does This Mean For Ambani and Mittal?

In the simplest of words, the two largest telecom players Jio and Bharti Airtel are out of the race for satellite broadband auction as there will be no auction.

The two were collectively arguing for an auction as they believed giving away satellite broadband airwaves will create an uneven playing field.

In the meantime, Elon Musk has reacted positively to a Tweet that has highlighted Scindia's statement supporting ITU's policy.

What Does This Mean For Indian Telecom and Broadband?

India being the fifth largest economy in the world by nominal GDP , is a market full of possibilities for Elon Musk 's Starlink. If the government sets pricing, entry costs will be lower as opposed to auction-based pricing. Therefore, it is only a matter of time before Starlink decides to capitalise on this opportunity. 

This would allow the consumers to avail of more affordable broadband services. But if Starlink were to go by it's global pricing model, these services would be on the more expensive side.

Additionally, Trump's praise for Starlink from earlier this week, before his victory at the US presidential elections, where he classifies Elon Musk as a "super genius" could also be indicative of the kind of policy decisions that may be taken to accommodate Starlink in India.

Furthermore, Musk himself has been trying to push Starlink into the Indian market since 2021, before he was asked to meet regulatory requirements.

(With PTI inputs)