Musk and Ambani on collision course over India satellite broadband row

Starlink boss Elon Musk has criticised billionaire Mukesh Ambani's lobbying efforts to auction satellite broadband spectrum instead of allocating it, calling the move "unprecedented" in response to reports of Ambani's actions.

In what is seen as a battle between the two billionaires, Starlink argues administrative allotment of licences is in line with a global trend, while Ambani's Reliance says an auction is needed for a level playing field as foreign players could offer voice and data services and compete with traditional telecom players.

Satellite broadband spectrum refers to the specific radio frequencies allocated for satellite-based internet services, enabling data transmission from satellites to ground stations.

On Sunday, it was reported that Ambani's Reliance has argued India's telecom regulator incorrectly concluded that home satellite broadband spectrum should be allocated and not auctioned, without seeking industry feedback, and the consultation process must start afresh.

Reacting to the news, Musk wrote on X that any such decision to auction as Reliance is lobbying for "would be unprecedented".

"This spectrum was long designated by the ITU as shared spectrum for satellites," he wrote late on Monday on X, referring to the International Telecommunication Union (ITU), a specialised UN agency for digital technology.

The satellite broadband spectrum technology is crucial for providing high-speed internet in remote or underserved areas, where traditional infrastructure is lacking, and is tightly regulated by international bodies like the ITU to avoid interference with other communications systems.

Contentious issue

India is a member of the ITU and signatory to its treaty that regulates satellite spectrum and advocates that allocation must be done "rationally, efficiently and economically" as it's a "limited natural resource".

Reliance did not respond to a request for comment on Tuesday. It has previously said that it is "imperative" upon the Indian regulator to consult on the methodology of spectrum assignment.

The methodology of giving out spectrum for satellite services in India — a market set to grow 36 percent a year to reach $1.9 billion by 2030 — has been a contentious issue since last year.

Sunil Mittal, co-chair of global satellite group Eutelsat, which has partnered with India's telecom operator Bharti Airtel, also voiced support for the auction route.

"Satellite companies who have ambitions to come into urban areas, serving elite retail customers, just need to take the telecom licenses like everybody else ... they need to buy the spectrum as telecom companies buy," Mittal, who is also the chair of Airtel, said at a New Delhi event.

Musk's Starlink and global peers like Amazon's Project Kuiper back an administrative allocation, saying it is a natural resource that should be shared by companies. Ambani, Asia's wealthiest man, is arguing for an auction process.

Reliance's latest lobbying move in India has intensified a face-off with Musk who wants to launch Starlink services in India but has voted for the spectrum allocation route, in which the government simply assigns spectrum to the companies.

An Indian government source said on Sunday the regulator was following due process of consultation.