Spectrum Shake-up: Elon Musk has endorsed India’s recent decision to allocate, rather than auction, spectrum for satellite broadband, a move announced by Communications Minister Jyotiraditya Scindia in line with global practices. Responding with a single word, “Promising,” Musk reacted to a post on X (formerly Twitter) discussing this policy, which benefits satellite providers like his company, Starlink.

The post from Alex stated, “NEWS: @Starlink India’s Minister for Communications Jyotiraditya Scindia said today in an interview with the Press Trust of India that spectrum for satellite broadband will be allocated, not auctioned as sought by telco tycoons Mukesh Ambani and Sunil Mittal.” Musk’s response signals his approval of the move, which could facilitate Starlink’s entry into India.

India’s decision aligns with International Telecommunications Union (ITU) guidelines that generally discourage auctions for satellite services. Scindia emphasized that the new Telecom Act places satellite spectrum in “Schedule 1,” requiring government allocation.

Implications for Indian Telecom Giants

This shift poses challenges for Indian telecom leaders Jio and Airtel, owned by Mukesh Ambani and Sunil Mittal, who have advocated for auction-based spectrum allocation similar to terrestrial networks. They argue that auctions encourage fair competition, especially given their significant investments in terrestrial spectrum.

Both Jio and Airtel view satellite broadband as vital for India’s digital growth, but the allocation model could give international players like Starlink easier market access.

For Starlink, India is a major growth opportunity with strong demand for internet connectivity. Government-regulated pricing, rather than auction-based costs, might lower entry expenses, potentially making Starlink more affordable for Indian consumers. However, if Starlink maintains its typical global pricing, it could still rank as a premium option. Whether Musk will adjust prices to cater to the Indian market remains uncertain.