New Delhi:
India's decision to allocate satellite spectrum, rather than auctioning it, will give consumers more choice, the telecommunications minister said on Monday, addressing concerns from Mukesh Ambani's Reliance Jio that the country could lose out to Elon's Starlink Musk, downplays.
Starlink has long wanted to launch in India and has clashed with billionaire Ambani's company in recent months over how the country should allocate spectrum for satellite services.
Reliance had pushed for an auction, but the Indian government sided with Musk, who wanted it to be administratively allocated in line with global trends. Analysts say an auction, which would require much more investment, would likely deter foreign rivals.
Ambani said he wanted a level playing field and was concerned that his telecom company, which has spent $19 billion on airwaves auctions, now risks losing broadband customers to Starlink and possibly even data and voice customers later as the technology advances.
“My job as telecommunications minister is to ensure that you have as many choices as possible,” Jyotiraditya Scindia told Reuters during an interview at his ministry's office in New Delhi.
Asked if Reliance's concerns were valid, he said, without naming any company: “Technology is never constant,” adding that businesses must continue to evolve.
Scindia noted that current satellite technology for communications requires devices to have a view of the sky, and smartphones cannot use that technology for indoor services provided by terrestrial networks.
“The minute you walk into this building, you're done,” he said.
India is one of the world's largest telecom markets with 942 million users and fierce competition between Reliance and rivals Bharti Airtel and Vodafone Idea. Data prices are among the cheapest in the world and internet connectivity has increased rapidly.
Deloitte predicts that India's satellite broadband services market will be worth $1.9 billion by 2030, making it lucrative for players like Starlink, Amazon and Ambani.
Scindia said applications from Starlink and Amazon Kuiper for a license to launch satellite broadband services in the country are still pending.
VODAFONE IDEA
Musk has a reputation for disrupting markets. In Kenya it cost Starlink $10 a month, compared to $120 in the United States, prompting a complaint last year from Kenya's Safaricom.
Scindia, a former aviation minister, is also overseeing many more telecom initiatives for Prime Minister Narendra Modi.
The Indian government owns a stake in Vodafone Idea, and the company announced in November that it still owed about $24 billion in debt to the government.
Scindia repeatedly declined to answer in the interview whether there were plans for relief from the outstanding dues.
However, the Indian government is working to revive state-owned telecom player Bharat Sanchar Nigam Limited (BSNL), which has lost market share over the years due to intense competition, he said.
BSNL has 99 million users, but is supported with an extensive range of 4G services.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is published from a syndicated feed.)
