India Allocates Satellite Spectrum, Attracts Global Interest

India's recent decision to allocate satellite spectrum administratively, rather than through auctions, aims to enhance consumer choice and foster competition in the telecom market. Telecom Minister Jyotiraditya Scindia stated this approach aligns with global trends and could attract foreign companies, despite Mukesh Ambani's Reliance Jio expressing concerns about losing market share to Elon Musk's Starlink. Reliance Jio advocated for an auction, emphasizing the need for a level playing field after investing $19 billion in airwave rights. Analysts suggest that the auction model may deter foreign entrants due to high costs, while the administrative allocation could lower barriers to entry. Scindia reassured that current satellite technology limitations would not affect consumer access indoors, as terrestrial networks offer indoor services. The government's shift in policy is seen as a strategic move to boost India's position in the global telecom landscape and stimulate innovation among service providers.