Space industry players should take note of the escalating competition in India’s satellite broadband market, as Elon Musk’s Starlink and Mukesh Ambani’s Reliance Jio prepare to clash over satellite spectrum allocation. The Government of India has opted to assign satellite communication frequencies through direct administrative allocation, rather than auctions, following the approach used by most countries in managing satellite spectrum.
On 15 October, Minister for Communications Mr. Jyotiraditya Scindia confirmed this development and stated that modalities of spectrum allocation will be finalised by the Telecom Regulatory Authority of India. India’s decision to administratively allocate satellite spectrum for broadband, rather than through auction, presents potential opportunities and challenges for those in the space sector, especially as India is poised to become a major market for satellite internet services.
With over 6,400 low-Earth orbit (LEO) satellites and four million subscribers globally, Starlink has long sought entry into India but has been delayed by regulatory barriers. Meanwhile, Reliance Jio, backed by its dominance in the terrestrial telecoms sector and a new partnership with SES Astra (a medium-Earth orbit, or MEO, operator), is pressing for an auction model to control the market and possibly restrict international competitors like Starlink.
This development could significantly impact satellite spectrum availability and pricing for operators looking to enter or expand in India, with potential ripple effects on market access and competitive positioning. India’s telecoms regulator, TRAI, is consulting on the issue. Its decisions will shape the regulatory framework for satellite broadband services, particularly concerning the balance between local and international operators.
For satellite operators and space companies, this contest over spectrum assignment has important implications:
- Market Access: India’s vast unconnected population, particularly in rural areas, represents a large growth opportunity. However, spectrum allocation policies could dictate who gains a foothold.
- Investment and Partnerships: The administrative pricing model could lower costs, but an auction could also increase the financial burden on new entrants, potentially affecting investment decisions.
- Strategic Positioning: The final decision on spectrum allocation will likely influence which companies can scale quickly, secure licences, and establish early partnerships.
Given the stakes, companies in the space industry may need to reassess their strategies for entering the Indian market or expanding services. Understanding the regulatory landscape and potential shifts in spectrum policy will be crucial for long-term success.
Access Partnership is actively tracking these regulatory developments and can provide expert guidance on navigating the complex policy environment. If this issue affects your strategy or you’d like to explore the implications further, please contact Juan Cacace at [email protected].
