India could Give Satellite Internet Spectrum without Auction, Jolt for Reliance Jio!

There may be a process of licensing in providing spectrum for satellite internet services in the country. With this, the companies providing these services will not have to bid for spectrum. This could be beneficial for Starlink, the company of the world's richest man Elon Musk. Starlink had lobbied against the auction for this spectrum.

A Reuters report states that this proposal has been included in the draft bill for the telecommunications sector. The bill will replace the 138-year-old Indian Telegraph Act, which regulates the sector. This bill has been presented in Parliament for approval on Monday. If this proposal is accepted, it will be a blow to the country's largest telecom company Reliance Jio. Foreign internet service companies had demanded license for this spectrum. These companies believe that if there is an auction for this in India, then this method can be implemented in other countries also. This will increase the cost and investment of these companies.

However, Reliance Jio says that auction is the right way for this. Musk's Starlink wants the central government not to auction the spectrum and issue licenses to start the service like other countries. The company believes that it is a natural resource and it should be shared among companies. Starlink says that the auction may impose geographical restrictions which will increase the cost. However, Reliance Jio does not agree with this. A few months ago, the company had sent a letter to the government demanding an auction for spectrum.

Reliance Jio had said that foreign satellite service providers can provide voice and data services and this will create difficulty for the country's telecom companies. For this reason, the company has demanded an auction so that there will be equal conditions of competition. Starlink has provided satellite internet service to Ukraine since the beginning of Russia's invasion of Ukraine last year. The main company of Starlink had spent a lot in providing free satellite internet service to Ukraine.

(Except for the headline, this story has not been edited by NDTV staff and is published from a press release)