“They need to buy the spectrum as the telecom companies buy,”
Says Sunil Mittal, the CEO of Bharti Enterprises, the parent organization of Bharti Airtel.
But who is this "they" he's talking about? And not just Mr. Mittal—Asia's richest man, Mukesh Ambani, also seems concerned.
The 'They' here is none other than our beloved billionaire Elon Musk. 🚀
So what’s actually going on?
In recent months, Starlink, the satellite communications company under Mr. Musk, which provides data over satellites instead of the traditional towers we see, has shown considerable interest in starting operations in India—one of the largest consumer markets for data, if not the biggest. 📡
Just like telecom spectrums (the ‘highways’ over which data is transferred between devices), satellite spectrums are also a limited resource—if not more so. This means there can only be a monopoly, at least for now, in the satcom business.
This is a pain in the... heart for Indian telecom giants like Jio and Bharti Airtel, who rely heavily on their massive Indian consumer base. 💔
If given the opportunity to control the satcom business, these companies would go all in to secure their share. But here's the problem: satcom spectrums, unlike telecom spectrums, aren't put up for auction. Instead, they are provided through an administrative route (or directly) to companies.
Both Jio and Mittal have raised concerns, arguing this reduces the scope for a fair playing field, especially since Starlink already has global expertise in the satcom industry.
But there’s also a business interest at play—the fear of losing market share to Starlink. 🏆
On the flip side, Musk is against an auction, as it would raise costs for Starlink and create entry barriers in an already competitive market like India, where they have no current foothold.
Mr. Musk rightly pointed out a policy by the ITU (International Telecommunication Union) stating that satcom spectrums should be allocated on an administrative basis, which India’s telecom minister, Jyotiraditya Scindia, and his ministry agree with.
As a result, TRAI (Telecom regulatory authority of India) has issued a consultation paper on the process, signaling the likelihood of spectrum allocations. In response, Jio has issued a statement that this violates fair play and may explore legal action as a last resort. ⚖
However, TRAI has made it clear that the spectrum won’t come cheap, adding further complications for companies.
It will be interesting to see how this battle of billionaires unfolds, with so many players involved. 🌍
Let me know what you think in the comments! 💬
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