India’s telecom regulator, the Telecom Regulatory Authority of India (TRAI), intends to propose a five-year satellite broadband spectrum allocation to track early market trends. This move goes against Elon Musk’s Starlink, which wants a 20-year permit, a senior government source told Reuters.
TRAI is working on recommendations for the government, covering spectrum pricing and duration. Unlike traditional auctions, this spectrum will be assigned administratively, the report said.
This follows recent tie-ups between SpaceX and Indian telecom giants Jio and Bharti Airtel to launch Starlink services in India.
New Partnerships and Past Rivalries
Musk recently partnered with Mukesh Ambani, letting Starlink devices tap into Reliance’s vast distribution network. The report noted this came after the two were rivals—Reliance had pushed for spectrum auctions for months, while Musk favored administrative allocation.
Starlink argued a 20-year term supports “affordable pricing and long-term business plans,” per its submissions. Reliance, however, suggested a three-year period with a market review, while Airtel backed a three-to-five-year timeframe.
A government official explained TRAI’s five-year plan, saying, “It’s enough to see how the market settles; no need to go longer now.” An industry insider added that this shorter term lets the government tweak pricing after five years as the market grows, according to the report.
Next Steps and Pricing Details
TRAI aims to wrap up its suggestions, including per-megahertz pricing, within a month. These will then head to India’s telecom ministry for approval, the source said. Satellite spectrum will cost “substantially less” than the 20-year telecom licenses typically auctioned, the official added. Still, Starlink’s deals with Reliance and Airtel depend on clearing regulatory hurdles in India.
This push gained traction after Prime Minister Narendra Modi met Musk in Washington, discussing space, tech, and innovation. Ambani, whose Reliance spent $19 billion on airwave auctions, worries Starlink could siphon off broadband users—and maybe even data and voice customers later, the report cited.
Growth on the Horizon
KPMG predicts India’s satellite communication market could jump tenfold to $25 billion by 2028, the report noted. As Jio and Airtel’s SpaceX collaborations move forward, more updates are likely to follow.