India's Telecom Minister Downplays Reliance Jio's Concerns on Satellite Spectrum Allocation

India's telecom minister has emphasized the benefits of allocating satellite spectrum administratively rather than auctioning it, citing increased consumer choice. This decision has sparked concerns from Mukesh Ambani's Reliance Jio, which expressed fears of losing market share to Elon Musk's Starlink.

Starlink has been seeking entry into India and has clashed with Reliance over spectrum allocation for satellite services. While Reliance advocated for an auction, the government aligned with Musk's preference for administrative allocation, following global trends.

Analysts believe that an auction, requiring substantial investment, could deter international competitors. Ambani expressed concerns about a level playing field, highlighting Reliance's significant investments in airwave auctions and the potential loss of broadband, data, and voice customers to Starlink.

"As telecom minister, my responsibility is to ensure maximum choice for consumers," said Jyotiraditya Scindia in an interview. He acknowledged the evolving nature of technology and the need for companies to adapt.

Scindia highlighted the limitations of current satellite technology for communication, which requires clear line-of-sight and is incompatible with smartphone indoor connectivity.

India's telecommunications market is vast, with over 942 million users and intense competition between Reliance, Bharti Airtel, and Vodafone Idea. Data prices remain among the lowest globally, and internet penetration has witnessed rapid growth.

Deloitte forecasts that India's satellite broadband service market will reach $1.9 billion by 2030, attracting players like Starlink, Amazon, and Reliance. Scindia confirmed that Starlink and Amazon Kuiper's license applications for satellite broadband services are under review.

Scindia declined to discuss potential relief for Vodafone Idea's outstanding dues. However, he emphasized the government's efforts to revive Bharat Sanchar Nigam Limited (BSNL), a state-owned telecom operator facing market share erosion. BSNL has 99 million users and is expanding its 4G services.