Musk reacts to Ambani lobbying, calls India's auction of satellite spectrum 'Unprecedented'

Elon Musk, CEO of Starlink, reacted strongly to reports that India may auction satellite broadband spectrum, labelling the move as "unprecedented." His comments follow news that billionaire Mukesh Ambani is lobbying for an auction, positioning the two billionaires in a contentious battle over the future of satellite services in the country. 

Musk's statement, made on X, addressed Ambani's claim that India’s telecom regulator mistakenly concluded that the spectrum should be allocated rather than auctioned. Ambani's Reliance argues that an auction is essential for ensuring a level playing field, as foreign entities could potentially offer voice and data services that compete with established telecom operators.

"This spectrum was long designated by the ITU as shared spectrum for satellites," Musk noted, referencing the International Telecommunication Union, which regulates satellite spectrum usage. He emphasised that such an auction would diverge from global norms, where administrative allotment of licences is increasingly common.

The controversy over spectrum allocation for satellite services in India has intensified, particularly as the market is projected to grow 36 per cent annually, reaching $1.9 billion by 2030. While Musk's Starlink and other global players like Amazon ’s Project Kuiper advocate for administrative allocation of spectrum, Ambani is pushing for an auction process.

Reliance has previously stated it is "imperative" for the Indian regulator to consult on the spectrum assignment methodology. The regulator has indicated it is following due consultation processes, although specifics on the next steps have not been disclosed.

As the rivalry escalates, the outcome of this debate could significantly influence the competitive landscape of satellite broadband services in India, where Musk aims to launch Starlink operations.