India could give Satellite Internet Spectrum without auction, Jolt for Reliance Jio!

There may be a licensing process for providing spectrum for satellite internet services in the country. This will prevent companies providing these services from bidding 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. This bill will replace the 138-year-old Indian Telegraph Act, which controls this sector. This bill has been introduced in Parliament for approval on Monday. If this Proposal If it is accepted then it will be the country’s largest telecom Company This will be a setback for Reliance Jio. Foreign internet service companies had demanded license for this spectrum. These companies believe that if auction is held for this in India, then this method can be implemented in other countries as well. 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 service for it like other countries. The company believes that it is a natural resource and companies should share it. Starlink says that 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 demanded auction for spectrum in a letter sent to the government.

Reliance Jio had said that foreign satellite service providers can provide voice and data services and this will create problems for the country’s telecom companies. For this reason, the company has demanded an auction which will create equal conditions for competition. Starlink had provided satellite internet service to Ukraine since the beginning of Russia’s attack on Ukraine last year. Starlink’s parent company 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)