Mukesh Ambani’s Reliance asks TRAI to review reach of Musk’s Starlink, Amazon’s Kuiper before…
Asia’s richest man, Mukesh Ambani, owned Reliance has requested India’s telecom regulator, the Telecom Regulatory Authority of India (TRAI), to check and review the potential reach of Amazon’s Kuiper and Elon Musk’s Starlink before allocating satellite spectrum. The move comes amid concerns that local telecom companies such as Jio, Airtel, and Vodafone Idea could suffer, a letter revealed on Friday.
Mukesh Ambani’s Last-Ditch Effort
Notably, Reliance’s letter was not public and was sent to the country’s telecom regulator. It also marks Mukesh Ambani’s last-ditch effort amid the ongoing competition with the world’s richest man Elon Musk over the granting of spectrum for satellite services. The Mukesh Ambani-owned company has called for an auction, and India has backed Musk’s preference for an administrative allocation, which aligns with global trends.
What the Letter Says
In the letter, which was reviewed by Reuters, Reliance said that it manages nearly 15 billion gigabytes of data monthly in India, with investments of about USD 23 billion in spectrum auctions over time. But, Starlink is targeting the identical audience with an ability to offer nearly 18 billion gigabytes of data via their satellites, possibly at a substantially reduced price.
What Experts Say
As per experts, auctions often necessitate substantial initial investments, potentially deterring international contenders, leaving the field clear for companies like Reliance.
“The authority should critically examine the capacities created by these mega … constellations such as Starlink and Kuiper,” the letter dated November 15 said.
As per a senior government source at TRAI, all the feedback will be check and reviewed before the final recommendations. This will happen before the year end.
On the other hand, Starlink, Amazon and Reliance have refrained from commenting on the development.
Starlink VS Indian Telecom Companies
Starlink is diligently working towards acquiring the security clearance needed to offer satellite broadband services in India. According to the nation’s telecom minister, it should meet all requirements, only then it will be granted the permit.
Reflecting on past tactics, Ambani once bundled his mobile plans with free data, a strategy not foreign to Musk. Notably, in Kenya, Musk significantly undercut his US Starlink pricing, offering the service for a mere USD 10 per month, in contrast to the USD 120 monthly charge stateside. This fierce competition has local telecom firms bracing for impact.
Reliance Jio has over 479 million telecom users, making it the number one player in the Indian telecom sector. Elon Musk’s Starlink has 6,400 active satellites that are capable of providing low-latency broadband to as many as four million users.