In a landmark decision, India has opted to assign internet airwaves through a licensing approach rather than through bidding, potentially facilitating the entry of Elon Musk’s satellite internet venture, Starlink, into the Indian market.
The central government’s move to forego the bidding process for spectrum allocation comes as a significant victory for Elon Musk. The licensing approach proposed for assigning spectrum to satellite internet services, as reported by Reuters, could expedite the deployment of Starlink in India. Notably, Starlink had actively advocated against the spectrum bidding process.
This crucial decision by the Centre was outlined in the newly introduced Telecommunications Bill 2023 presented in the Parliament this week. The bill aims to replace the antiquated Indian Telegraph Act, which has governed the telecommunications sector for 138 years.
While this move signals a breakthrough for entities like Starlink, Amazon’s Project Kuiper, and the British government’s OneWeb, it poses a setback for Mukesh Ambani’s Reliance Jio.
Reuters had previously highlighted the concerns of foreign firms seeking expansion in India, advocating for a licensing approach. They feared that an auction-based allocation, unlike other countries, might prompt similar actions globally, raising costs and necessitating substantial investments.
Reliance Jio, a dominant force in India’s telecom industry, had been actively pushing for spectrum bidding in the satellite internet airwaves domain, anticipating market dominance for years to come.
Had the government opted for the bidding process, it was expected that Reliance Jio and Bharti Airtel would lead, potentially overshadowing international players like Starlink and OneWeb in the market.
The exact timeline for the allotment of internet spectrum by the Indian government remains undisclosed. However, expectations suggest that the announcement may follow after the results of the 2024 Lok Sabha elections.
The government’s decision to adopt a licensing model for spectrum allocation is poised to reshape India’s satellite internet market, potentially opening doors for global players while presenting challenges for domestic giants like Reliance Jio in the evolving telecommunications landscape.
Sources By Agencies