Reliance Jio Challenges TRAI’s Spectrum Decision Amid Tensions with Elon Musk’s Starlink

Indian billionaire Mukesh Ambani’s Reliance Jio is arguing against the telecom regulator’s decision on how satellite broadband spectrum should be given out in India, sparking a new clash with Elon Musk’s Starlink.

The debate revolves around whether satellite spectrum for home broadband should be auctioned or allocated by the government. Starlink and other global companies, like Amazon’s Project Kuiper, favor government allocation, while Ambani’s Reliance Jio wants the spectrum to be auctioned.

The disagreement over how to interpret Indian law on this issue has intensified since last year. Industry insiders say the law allowed for the government to allocate satellite spectrum in 2022, as Musk preferred. But Reliance argues there are no clear rules for satellite broadband for home users.

On October 10, Reliance sent a private letter to India’s telecom minister, claiming that the telecom regulator, TRAI, has “wrongly assumed” that allocation is the best method. Reliance insists an auction is necessary and wants the consultation process restarted.

TRAI, which is still gathering feedback, stated that due process is being followed, and Reliance can share its concerns during the consultation. The final decision will be based on TRAI’s recommendations to the government.

India’s satellite broadband market is expected to grow 36% annually and reach $1.9 billion by 2030, according to Deloitte.

Elon Musk is eager to launch Starlink in India, but the spectrum allocation issue remains unresolved. While Starlink supports the global trend of administrative allocation, Reliance argues that an auction would ensure fair competition, especially since foreign players might offer services that compete with Indian telecom providers.

Reliance Jio is India’s largest telecom operator with 480 million users.