Elon Musk has expressed his gratitude to Telecom Minister Jyotiraditya Scindia for his decision not to align with Indian tycoons Mukesh Ambani and Sunil Bharti Mittal on auctioning spectrum for satellite services.
The decision not to auction spectrum for satellite services has significant implications for companies like Musk’s SpaceX, which operates the Starlink satellite internet service. In response to Scindia’s announcement, Musk took to X to thank the minister, expressing his appreciation for the decision, which he believes will facilitate smoother operations and growth for satellite-based internet services in India.
In a post on X, Musk praised Scindia's stance, saying, “Much appreciated! We will do our best to serve the people of India with Starlink.”
This is also seen as a major setback for India's richest man Mukesh Ambani, as he had requested the Indian government to go for an auction, which the Starlink CEO Elon Musk had questioned. Now that the Telecom Ministry has decided to pursue the administrative route for allocation of satellite communication spectrum, it is in line with the global trend.
Elon Musk and Indian tycoons Ambani and Mittal are locked in a standoff over satellite spectrum and nuances of its allocation. As, Musk had objected to Reliance Industries Chairman's lobbying for an auction route for spectrum allocation.
The move to bypass spectrum auctions for satellite services could potentially lower costs and accelerate deployment timelines for satellite-based internet providers like Starlink. Musk’s Starlink aims to provide high-speed internet connectivity globally through a constellation of low Earth orbit (LEO) satellites, which could transform internet access in remote areas of India where traditional broadband infrastructure is limited or non-existent.
Starlink and other global initiatives like Amazon’s Project Kuiper advocate for the administrative allocation of spectrum, aligning with international standards. Musk emphasised that the International Telecommunication Union (ITU), a UN agency of which India is a member, designates satellite spectrum as shared, arguing that it should not be subject to auction.
Whatever the case maybe, for Indian consumers, this could mean faster access to satellite broadband services, as companies like Starlink continue to expand their coverage in the region.
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