Reliance Jio, led by Mukesh Ambani, is escalating its dispute with India’s telecom regulator, TRAI, accusing it of wrongly interpreting Indian law by favouring administrative allocation of satellite spectrum instead of auctions. In a letter dated October 10, Jio’s regulatory chief, Kapoor Singh Guliani, criticised TRAI for allegedly preempting the consultation process. Jio argues that only an auction-based system will ensure fair competition, warning that allocation without bidding could give foreign players like Elon Musk’s Starlink and Jeff Bezos-backed Project Kuiper an unfair edge in the burgeoning satellite broadband market.
Provisional Spectrum: DoT’s Temporary Solution
Adding to the regulatory twists, the Department of Telecommunications (DoT) has approved provisional satellite spectrum allocations for six months, effective from October 21. This allows Bharti-backed Eutelsat OneWeb and Jio’s satellite arm, Orbit Connect India, to begin testing their services. According to the DoT, the provisional allocation will remain valid either for six months or until licensees meet all required security and technical conditions.
This temporary allocation gives domestic players like Orbit Connect and OneWeb a crucial head start in preparing their services. The decision could also influence how the final spectrum policy evolves, raising the stakes for international competitors like Starlink and Kuiper, who are still awaiting regulatory approvals to launch their services in India.
Starlink’s Regulatory Hurdles in India
Starlink, a subsidiary of Musk’s SpaceX, has faced a rocky road in India. In 2021, it began accepting pre-orders for its satellite services without the required regulatory clearance, forcing the DoT to intervene and halt operations. This misstep continues to haunt Starlink’s India plans, as it awaits a Global Mobile Personal Communication by Satellite Services (GMPCS) license.
The regulatory delays have slowed Starlink’s ambitions, with no clear timeline for a launch. Adding to the challenges, Indian officials have reportedly expressed concerns about Starlink’s compliance, given the company’s involvement in international geopolitical events like the Russia-Ukraine war, where it provided satellite-based internet services.
Amazon Kuiper’s Strategic Entry
Amazon’s Project Kuiper is taking a more cautious approach to entering the Indian market. With plans to deploy 3,232 low-earth orbit (LEO) satellites by 2029—half of them operational by 2026—Kuiper has applied for a GMPCS license and awaits clearance from the Indian National Space Promotion and Authorization Centre (In-SPACe).
Kuiper has begun assembling a local team, led by Rahul Savoor, its head of South Asia strategy, and has recruited regulatory experts, including former executives from OneWeb, to help navigate India’s complex satellite landscape. The company hopes to capitalise on streamlined regulatory approvals, especially if TRAI’s recommendations favour administrative allocation.
Jio’s Orbit Connect and the OneWeb Advantage
With its satellite arm, Orbit Connect India, Jio is positioning itself to compete aggressively in the satellite broadband space. While Jio has no direct ownership in OneWeb, both companies share aligned interests in developing satellite-based services for India. OneWeb, which is already operational with 634 satellites, is in a favourable position, as the provisional spectrum allocation gives it an early opportunity to refine its offerings.
Both Orbit Connect and OneWeb are well placed to benefit from the DoT’s temporary spectrum, potentially strengthening their market position ahead of Starlink and Kuiper.
Spectrum Allocation: Auction or Administrative Path?
The core issue in this regulatory conflict is whether spectrum should be allocated through auctions or administratively. Starlink and Kuiper argue that administrative allocation follows global best practices, reducing deployment costs and enabling faster rollouts. However, Jio contends that auctions are essential to ensure transparency and prevent foreign companies from bundling satellite services with telecom offerings, which could disrupt India’s existing telecom ecosystem.
India’s updated telecom laws permit administrative allocation without auctions, but TRAI’s final recommendations will shape how quickly satellite operators can enter the market. Jio has demanded a restart of the consultation process, adding another layer of complexity to the debate.
The Road Ahead: Who Will Dominate the Skies?
The DoT’s provisional spectrum allocation, effective from October 21, could provide a strategic advantage to Jio’s Orbit Connect and OneWeb, giving them time to fine-tune operations. However, the broader battle over permanent spectrum allocation remains unresolved. TRAI’s decision—whether to favour administrative allocation or auctions—will play a pivotal role in determining the market dynamics.
If TRAI leans toward administrative allocation, Starlink and Kuiper could fast-track their launches and challenge domestic players. But if auctions prevail, Jio, armed with financial muscle and operational readiness, may emerge as a dominant force.
As India’s satellite broadband sector accelerates toward $1.9 billion in value by 2030, the stakes could not be higher. The winners of this spectrum war will not only deliver high-speed internet across India but also shape the future of the country’s digital economy for years to come.
