Mukesh Ambani’s Reliance Jio has called on India’s telecom regulator, TRAI (Telecom Regulatory Authority of India) to reassess the potential impact of Elon Musk’s Starlink and Amazon’s Kuiper before allocating satellite spectrum.

What Happened: This request, detailed in a letter seen by Reuters, underscores Ambani’s ongoing battle with Musk over the method of spectrum allocation in India.

While Reliance Jio supports an auction-based approach in line with how the telecom spectrum has been allotted in the country, the Indian government aligns with Musk’s preference for administrative allocation.

In a letter sent to TRAI, as seen by Reuters, Jio underscored the quantum of data it handles for its 479 million subscribers.

The telco said it handles 15 billion gigabytes of data monthly in India, following a $23 billion investment in spectrum auctions.

In contrast, Starlink plans to serve similar customers with an 18 billion gigabyte capacity at potentially lower costs.

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Experts suggest that auctions could lead to higher initial costs, potentially deterring foreign competitors in favour of Reliance. A senior telecom regulator source mentioned that all feedback will be reviewed before final recommendations, expected by year-end, according to the report.

Why It Matters: The debate over satellite spectrum allocation in India has been ongoing, with significant implications for the country’s telecommunications landscape.

In December, the Indian government introduced a draft bill proposing a licensing framework for satellite internet spectrum, bypassing traditional auctions.

This move was seen as a victory for international players like SpaceX's Starlink and Amazon’s Project Kuiper, who have advocated for a licensing model, arguing that auctions could inflate costs and deter investment.

In October 2023, Musk expressed appreciation for India’s decision to allocate spectrum administratively, viewing it as a positive step for Starlink’s expansion in the country.

Meanwhile, Reliance Jio launched JioSpaceFiber, India’s first satellite-based gigabit broadband service, showcasing its commitment to providing high-speed internet across the nation, even in remote areas.

This ongoing battle between domestic and international players highlights the strategic importance of satellite internet in India’s digital future.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photos courtesy: World Economic Forum and TED Conference on Flickr