Written by Aditya Kalra and Aditi Shah
NEW DELHI (Reuters) – Indian billionaire Mukesh Ambani’s Reliance Co has privately argued that the telecom regulator incorrectly concluded that New Delhi should allocate broadband spectrum for home satellites and not auction it off, intensifying a standoff with Elon Musk’s Starlink. .
How spectrum is distributed for satellite services in India has been a controversial issue since last year.
Musk’s Starlink and global peers like Amazon’s (NASDAQ:) Project Kuiper support administrative allocation, while Ambani – Asia’s richest man who runs India’s Reliance Jio – calls for an auction.
The current dispute is over the interpretation of the Indian law, which some in the industry say paved the way for last year’s spectrum allocation as Musk wanted.
But Reliance says there are no provisions in place for satellite broadband services for individual or home users, industry sources said on Sunday.
Telecom regulator TRAI is currently holding a public consultation, but Reliance asked in a private letter on October 10 to start the process afresh because the watchdog “proactively interpreted” that allotment was the way forward, not auction.
“The TRA appears to have concluded, without any basis, that spectrum allocation should be administrative,” Kapoor Singh Giuliani, Reliance’s chief regulatory affairs officer, wrote in the letter to India’s Telecom Minister Jyotiraditya Scindia.
TRAI noted in its consultation paper that Indian laws mandate allocation of spectrum for such services without conducting any studies, Reliance added in its letter, which is not public.
Reliance and the Ministry of Communications did not immediately respond to requests for comment.
A senior TRAI official said on Sunday that due process is being followed and Reliance is welcome to share comments during the consultation period.
The recommendations of the supervisory body will form the main basis for the government’s decision in this regard.
Deloitte says India’s satellite broadband market will grow 36% annually to reach $1.9 billion by 2030.
Tesla (NASDAQ:) CEO Musk is keen on launching Starlink in India, though the final decision on spectrum allocation remains a sticking point.
Starlink says the administrative allocation of licenses is in line with a global trend. Reliance says an auction is needed to provide a level playing field where foreign players can offer voice and data services and compete with traditional players, Reuters reported.
Reliance’s Jio is India’s No. 1 telecom company with 480 million users.