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Elon Musk’s Starlink battles Indian telcos over satellite spectrum auction demands

In the ongoing debate over satellite spectrum allocation in India, Elon Musk’s Starlink has openly challenged Indian telecom giants, notably Bharti Airtel, for pushing what it terms a “self-serving” agenda in demanding auction-based spectrum pricing for urban and retail satellite services. Starlink’s statement comes as part of the consultation process by the Telecom Regulatory Authority of India (Trai), focusing on the future of satellite broadband in the country.

At the centre of this dispute is the stark contrast in how traditional telcos and satcom providers perceive satellite spectrum allocation. Bharti Airtel, supported by the Bharti-backed satcom venture Eutelsat Oneweb, Vodafone Idea, and the Cellular Operators Association of India (COAI), advocate for a differentiated pricing strategy. They argue that spectrum should be auctioned when serving urban areas to level the playing field with terrestrial networks, while administrative pricing could apply only for remote areas.

“India’s telcos are pushing for reasonable pricing for their satellite systems while lobbying for inflated rates for others,” Starlink said in its recent Trai submission. The company’s stance is that the calls for auction-based pricing serve only the traditional telcos’ business models, not the needs of underserved communities.

India’s telecom operators argue that the promise of rural connectivity is a “fallacy” used by global satellite players like Starlink and Amazon to secure favourable terms for spectrum. Vodafone Idea has asserted that satellite broadband will extend far beyond underserved areas to include urban and semi-urban zones, directly competing with terrestrial providers.

“It’s crucial that Trai ensures a fair playing field,” Vodafone Idea stated, highlighting the need to price spectrum in a way that aligns with competitive principles. Jio echoed these concerns, noting that satcom players will bring substantial capacities, comparable to, or even surpassing, traditional telecom infrastructure.

With the ability to reach capacities up to 1 terabit per second per satellite, as in Amazon’s Kuiper constellation, Jio argues that the capacity of SpaceX’s Starlink and Amazon’s satellites would make them formidable competitors in the broadband space.

For Starlink, the telcos’ demand to auction satellite spectrum is simply an attempt to restrict competition. The company contends that underserved users should not face higher costs solely to accommodate the traditional telcos’ market positions. “These operators are attempting to reframe their limitations as intentional system choices, which appears transparently self-serving,” Starlink remarked.

This stance resonates with the larger strategy of global satcom players who see satellite broadband as a means to reach remote and hard-to-connect regions. By keeping spectrum costs accessible, satellite providers believe they can offer affordable, broad-reaching connectivity solutions across India, a strategy that has come under scrutiny as domestic telcos argue for equal pricing standards. Business Today

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