Much appreciated: Elon Musk after government confirms ‘no spectrum auction’

Union Minister Jyotiraditya Scindia announced on Tuesday that India will allocate satellite spectrum administratively, in line with global practices, rather than through an auction.
Following this announcement, Elon Musk, CEO of Starlink, reacted to the decision. “Much appreciated! We will do our best to serve the people of India with Starlink,” he wrote to X.
Musk had previously been vocal about his stance against the auction of satellite spectrum, a position that contrasts with the preferences of Indian telecom giants like Mukesh Ambani’s Reliance Jio and Sunil Bharti Mittal’s Bharti Airtel.
During the announcement, Telecom Minister Scindia explained that India’s decision aligns with international standards.
“Satellite spectrum across the world is allocated administratively. So, India is not doing anything different from the rest of the world,” Scindia said, clarifying the government’s stance.
The decision to adopt the administrative allocation of spectrum comes after Elon Musk and his company Starlink, along with other global satellite players such as Amazon’s Project Kuiper, voiced their support for this method. According to Musk, the International Telecommunication Union (ITU), a United Nations agency, classifies satellite spectrum as shared, and therefore, it should not be auctioned. India is a member of the ITU, which further strengthens the argument for administrative allocation.
The debate over how satellite spectrum should be allocated gained significant attention after Mukesh Ambani’s Reliance Jio pushed for a spectrum auction. Musk, however, openly criticised the idea, calling the auction process “unprecedented.” He argued that such a move would be an outlier in global satellite communication practices and could hinder the expansion of satellite-based internet services like Starlink in India.
Just a day before the government’s announcement, Musk had responded to reports about Reliance Jio’s stance, questioning the logic behind auctioning satellite spectrum. He expressed concerns that the auction route could create unnecessary barriers for companies like Starlink that aim to provide affordable satellite internet access, especially in rural and remote areas of India.
Elon Musk has long been eyeing the Indian market for Starlink, his satellite internet venture. Starlink aims to offer high-speed internet in remote and underserved areas by deploying a large constellation of low-earth orbit (LEO) satellites. Musk believes that the administrative allocation of spectrum will help accelerate Starlink’s entry into India and improve internet access in regions where traditional telecom infrastructure is lacking.
The administrative allocation approach, widely adopted by countries across the globe, enables companies like Starlink to operate without the burden of hefty auction fees. This approach is considered more conducive for expanding satellite-based services, which are crucial for connecting areas with limited access to traditional broadband networks.
While the government’s decision is a win for Musk and other satellite service providers, it has met with opposition from Indian telecom giants. Mukesh Ambani, head of Reliance Jio, had been lobbying for an auction of the satellite spectrum, arguing that an auction would create a level playing field. Sunil Bharti Mittal’s Bharti Airtel had also been in favour of an auction process.
Despite their arguments, the government’s stance appears firm, siding with the global practice of administrative spectrum allocation. This decision could have a significant impact on the future landscape of the satellite internet in India, allowing new entrants like Starlink to compete more freely.