India's decision to allocate satellite spectrum instead of auctioning it is expected to provide consumers with more options, according to the telecoms minister. The concern expressed by Mukesh Ambani's Reliance Jio about losing ground to Elon Musk's Starlink is being downplayed. Starlink has been vying to enter the Indian market and has been in discussions with Ambani's company regarding how spectrum for satellite services should be assigned in the country.
Reliance had advocated for an auction, but the Indian government aligned with Musk's preference for administrative allocation, in line with global practices. Ambani emphasized the importance of a fair competitive environment, expressing worries about losing broadband customers to Starlink. Minister Jyotiraditya Scindia highlighted the need for providing diverse choices to consumers during an interview with Reuters in New Delhi.
When asked about concerns raised by Reliance, Scindia pointed out the evolving nature of technology without directly naming any company. He noted that present satellite communication technology requires devices to have clear sky visibility, limiting indoor services for smartphones, which are currently reliant on terrestrial networks. In the highly competitive Indian telecom market, Reliance, Bharti Airtel, and Vodafone Idea are key players, striving to tap into the rapidly expanding internet connectivity and cost-effective data services landscape.
Deloitte forecasts a significant growth in India's satellite broadband market, estimating it to reach $1.9 billion by 2030, attracting contenders like Starlink, Amazon, and Ambani's ventures. Scindia disclosed that applications from Starlink and Amazon Kuiper for launching satellite broadband services in India are still pending government approval. Known for market disruption, Musk's Starlink service in Kenya priced at $10 per month, significantly lower than the US pricing, triggering reactions from local competitors like Safaricom.
Scindia, a former aviation minister, is actively involved in various telecom initiatives under Prime Minister Narendra Modi's government. He mentioned ongoing efforts to rejuvenate BSNL, a state-owned telecom operator facing market share challenges due to intense competition in recent years. Despite BSNL's 99 million users, efforts are being made to enhance its services with the rollout of 4G offerings.
The interview did not yield information on plans for addressing Vodafone Idea's outstanding dues totaling around $24 billion to the government, in which the government holds a stake. However, the government is focused on the revival of BSNL and its repositioning in the competitive telecom sector, as articulated by Minister Scindia.