War of billionaires: Musk, Tata, Mittal & Amazon on one side, Ambani on other for satellite spectrum

Elon Musk desires his Starlink to beam down wi-fi net in India from satellites orbiting the earth, however the licensing regime his team favours has put him at odds with Mukesh Ambani's Reliance. After assembly Prime Minister Narendra Modi in New York ultimate week, Musk on June 21 stated he used to be eager to launch Starlink in India that "can be tremendously helpful" in bringing the net to far flung villages that lack on-ground infrastructure.


But Starlink wants India to just assign a license for the service and not insist on auctioning the signal-carrying spectrum or airwaves. This stand finds Musk on the side of Tatas, Sunil Bharti Mittal's firm, and Amazon, who too prefer the same route. But Ambani's Reliance says there must be an auction of spectrum for foreign satellite service providers to offer voice and data services to provide a level playing field to traditional telecom players who offer the same services using airwaves bought in government auctions.


"India's space-based communication services (SS) spectrum decision is key. Mobile spectrum has been auctioned since 2010 with the government's cumulative sale of USD 77 billion and several players are keen on SS," brokerage CLSA said in a note on 'Satellite Spectrum Battle Ahead


Amazon's Kuiper, Tata, Bharti Airtel-backed OneWeb, and Larsen & Toubro are against the auction while Reliance Jio and Vodafone-Idea support an India SS auction, it said.


Sources said some in the government believe an auction is the best route as it would get the foreign companies to commit investment in the country. Also, it will allow some kind of regulation over content that can be streamed on OTT platforms using the SS.

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