By Aditya Kalra and Aditi Shah
NEW DELHI (Reuters) – Indian billionaire Mukesh Ambani's Reliance has argued that the telecoms regulator incorrectly concluded that domestic satellite broadband spectrum should be allocated and not auctioned, a letter seen by Reuters shows, escalating a standoff with Starlink by Elon Musk.
The spectrum allocation methodology for satellite services in India – a market that will grow 36% annually to reach $1.9 billion by 2030 according to Deloitte – has been a contentious issue since last year.
Musk's Starlink and global peers like amazon's (NASDAQ:) Project Kuiper support an administrative assignment, while Ambani, Asia's richest man who runs India's Reliance Jio, advocates for an auction process.
The current dispute revolves around an interpretation of Indian law that some in the industry say paved the way for spectrum allocation last year as Musk wanted.
But Reliance argues that there are no provisions for satellite broadband services for individual or household users, industry sources said on Sunday.
Telecom regulator TRAI is holding a public consultation but Reliance, in a private letter dated October 10 seen by Reuters, asked that the process be started again as the watchdog has “preemptively interpreted” that assignment is the way to go.
“TRAI appears to have concluded, without any basis, that spectrum allocation should be administrative,” Reliance senior regulatory affairs official Kapoor Singh Guliani wrote in the letter to India's telecom minister, Jyotiraditya Scindia.
LEVEL PLAYING FIELD
TRAI stated in its consultation paper that Indian laws mandate allocation of spectrum for such services without conducting any study, Reliance added in its letter.
“We have requested TRAI to amend the consultation document” to ensure a level playing field, Reliance Jio said in a statement to Reuters on Sunday, adding that “it is imperative that TRAI also consults on the allocation methodology” of spectrum.
A senior TRAI official said on Sunday that due process is being followed and Reliance can share its comments during the consultation period.
The recommendations of the watchdog will form the basis for the government's decision in this regard.
Tesla (NASDAQ ) boss Musk is interested in launching Starlink in India, although the final decision on spectrum allocation remains a sticking point.
Starlink maintains that the administrative allocation of licenses is in line with a global trend. Reliance says an auction is needed to level the playing field as foreign players could offer voice and data services and compete with traditional players, Reuters reported.
Reliance's Jio is India's number one telecom player with 480 million users.
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