After Musk-Ambani tussle, India bets satellite spectrum policy can attract many companies

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Starlink has long been eager to enter the Indian market and has recently had disagreements with media mogul Ambani's company over how to allocate spectrum for satellite services in the country.

Reliance suggested holding an auction, but the Indian government agreed with Musk that it should be allocated administratively, similar to global industry practices. Experts note that an auction, which would require significantly more investment, may discourage foreign competitors.

Ambani stated that he wants a level playing field. He has been concerned that his telecom company, which invested $19 billion in the airwave auctions, now faces the threat of losing broadband customers to Starlink and possibly even data and voice clients as technology advances.

"My job as the telecommunications minister is to ensure that you have as many options as possible," Jyotiraditya Scindia said during an interview at his ministry's office in New Delhi.

He was asked if there was any merit to the concerns raised by Reliance, and he said, without naming a specific company, "Technology is never static," adding that companies must keep evolving.

Scindia pointed out that current satellite communication technology requires devices to have a view of the sky, and smartphones are unable to use that technology for indoor services that are provided by terrestrial networks.

He made it clear that once you stepped foot in this building, you're finished.

India is one of the world's largest telecommunications markets with 942 million users and intense competition among major players such as Reliance, Bharti Airtel, and Vodafone Idea. Data prices among the cheapest in the world and internet connectivity has increased rapidly.

Deloitte forecasts that the Indian satellite broadband service market will be worth $1.9 billion by 2030, making it a financially attractive opportunity for companies like Starlink, Amazon, and Ambani.

Sitharaman's statement comes after several US-based companies including Elon Musk's Starlink and Amazon's Kuiper Systems submitted licence applications to provide satellite broadband services in India.

VODAFONE IDEA

Elon Musk is known for disrupting markets. In Kenya, he offered Starlink for $10 a month, while it costs $120 in the United States, sparking a complaint from Kenya's Safaricom last year.

A former minister of aviation, Scindia is also handling many additional telecommunications projects for Prime Minister Narendra Modi.

The Indian government holds a stake in Vodafone Idea, and in November the company reported that it still owed the government around $24 billion in unpaid taxes.

Scindia repeatedly declined to answer if there are any plans for relief on the outstanding debts.

The Indian government is actually working to revive the state-owned telecommunications company, Bharat Sanchar Nigam Limited (BSNL), which has seen its market share decline in recent years, he noted.

BSNL serves 99 million subscribers as it expands its 4G service offerings.

(Reporting by Aditya Kalra and Aditi Shah; Additional reporting by Munsif Vengattil; Editing by Emelia Sithole-Matarise)