Ambani’s Reliance asks India to review reach of Musk’s Starlink, Amazon

10:41 am Friday, November 15th, 2024

By Aditya Kalra and Munsif Vengattil

NEW DELHI (Reuters) – Billionaire Mukesh Ambani’s Reliance has asked India’s telecom regulator to review the potential reach of Elon Musk’s Starlink and Amazon’s Kuiper before awarding satellite spectrum amid concerns local players could suffer, a letter showed on Friday.

Reliance’s letter, which is not public, is Ambani’s last-ditch effort in an ongoing face-off with Musk over how India should grant spectrum for satellite services. While Reliance has called for an auction, India has sided with Musk who – in line with global trends – wanted an administrative allocation.

In the letter, reviewed by Reuters, Reliance said it carried about 15 billion gigabyte of data every month in India after spending about $23 billion on spectrum auctions over the years, but Starlink would target the same customers with a potential capacity of nearly 18 billion gigabyte of data via its satellites with a likely much lower outlay.

Experts say auctions tend to mean higher initial investments which could have deterred foreign players in favour of Reliance.

“The authority should critically examine the capacities created by these mega … constellations such as Starlink and Kuiper,” the letter dated Nov. 15 said.

A senior government source at the telecom regulator said all feedback being received would be reviewed before making final recommendations, tentatively before the year end.

Starlink, Amazon and Reliance did not respond.

Starlink is seeking security clearance for a licence to offer satellite broadband services in India and will get a permit if it satisfies all conditions, the telecom minister said this week.

Ambani once gave data for free on his mobile plans, and Musk has adopted similarly aggressive tactics. In Kenya, Musk priced Starlink at $10 per month, versus $120 in the United States, unsettling local telecom players.

Ambani, Asia’s richest man, has more than 479 million Indian telecom users, making Reliance Jio the No. 1 player. Musk’s Starlink, a unit of SpaceX, has 6,400 active satellites orbiting Earth providing low-latency broadband to four million customers.

(Reporting by Aditya Kalra; Editing by Mark Potter)