Exciting developments are unfolding in the Indian satellite broadband landscape as the Telecom Regulatory Authority of India (TRAI) proposes a five-year spectrum allocation plan. This bold move stands in contrast to Elon Musk’s Starlink, which seeks a more extended 20-year permit, according to a senior government source reported by Reuters.
TRAI is currently drafting recommendations that will encompass spectrum pricing and duration, opting for an administrative assignment rather than traditional auctions. This comes on the heels of recent collaborations between SpaceX and major Indian telecom players like Jio and Bharti Airtel, aimed at launching Starlink services across India.
New Partnerships and Past Rivalries
In a surprising twist, Musk has partnered with Mukesh Ambani, enabling Starlink devices to leverage Reliance’s extensive distribution network. This alliance follows a period of rivalry, during which Reliance advocated for spectrum auctions while Musk pushed for administrative allocations. Starlink argues that a 20-year term would foster “affordable pricing and long-term business plans,” whereas Reliance proposes a shorter three-year term with market reviews, and Airtel supports a time frame of three to five years.
A government official elaborated on TRAI’s five-year strategy, stating, “It’s enough to see how the market settles; no need to go longer now.” This shorter term allows for potential pricing adjustments as the market evolves, making it a strategic move for the government.
Next Steps and Pricing Details
TRAI is expected to finalize its recommendations, including per-megahertz pricing, within the next month. These proposals will then be submitted to India’s telecom ministry for approval. Notably, the cost of satellite spectrum is projected to be significantly lower than the traditional 20-year telecom licenses. However, Starlink’s partnerships with Reliance and Airtel are contingent upon overcoming regulatory challenges in India.
This momentum has been accelerated following Prime Minister Narendra Modi’s recent discussions with Musk in Washington, focusing on space, technology, and innovation. Ambani, whose Reliance invested $19 billion in airwave auctions, remains concerned that Starlink could divert broadband users—and potentially voice and data customers—from his services.
Growth on the Horizon
Industry analysts at KPMG predict that India’s satellite communication market could surge tenfold, reaching $25 billion by 2028. As Jio and Airtel’s collaborations with SpaceX progress, we can expect more exciting updates to emerge.
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