In an escalating debate within the telecom sector, Reliance Jio is making a final effort to challenge the direct allocation of satellite spectrum. This move attempts to block satellite giants like SpaceX’s Starlink from operating in India without stricter regulations. The telecom leader argues that the expansive reach of these satellite constellations could pose a significant threat to traditional wireless operators.
Highlighting the issue, Reliance Jio has formally requested India’s telecom regulator to examine impacts from satellite players like Starlink and Amazon’s Kuiper before proceeding with spectrum allocation. The company contends these players should acquire spectrum via auction, similar to established norms for wireless spectrum.
Traditionally, satellite spectrum allocations occur directly across the globe. Nonetheless, Reliance Jio and Bharti Airtel have been vocal about the need for auctioned spectrum. They argue that Starlink’s operations would unfairly compete with mobile operators by securing cheaper data costs.
Currently, Reliance Jio manages 15 billion gigabytes of data monthly using spectrum purchased for approximately $23 billion in auctions. Comparatively, Starlink could handle 18 billion gigabytes per month, at a proportionally lower cost. This scenario presents concerns over an uneven competitive landscape.
For months now, both Reliance Jio and Bharti Airtel have underscored their worries regarding potential price wars. Such dynamics could add strain to an already competitive market. A recent example is Starlink’s aggressive pricing in Kenya—plans priced as low as $10 a month in stark contrast to the $120 charged in the US.
However, last month, Jyotiraditya Scindia, India’s communications minister, confirmed there are no current intentions to auction satellite spectrum. The government anticipates making a definitive decision by the year-end.
While Starlink edges closer to operational approval in India, it faces opposition beyond telecom struggles. The Kutniti Foundation, an Indian think tank, argues Starlink presents security risks due to its strong ties to US intelligence services and military.
