India's decision to allocate satellite spectrum, rather than auction it, will give consumers more choice, the telecoms minister said on Monday, playing down concern by Mukesh Ambani's Reliance Jio that it could lose out to Elon Musk's Starlink.
Starlink has long wanted to launch in India and has in recent months clashed with billionaire Ambani's company over how the country should grant spectrum for satellite services.
Reliance had urged an auction but the Indian government sided with Musk who wanted it to be allocated administratively, in line with global trends. Analysts say an auction, requiring much more investment, would likely deter foreign rivals.
Ambani said he wanted a level playing field and has been worried that his telecom company, which spent $19 billion in airwave auctions, now risks losing broadband customers to Starlink and potentially even data and voice clients later as technology advances.
"My job as telecoms minister is to make sure that you have as many choices as possible," Jyotiraditya Scindia told Reuters during an interview at his ministry's office in New Delhi.
Asked if there was merit in Reliance's concerns, he said, without naming any company: "Technology is never constant", adding that companies need to keep evolving.
Scindia noted that current satellite technology for communications requires devices to have the sky in their sight, and smartphones cannot use that technology for indoor services that are provided by terrestrial networks.
"The minute you come into this building, you're done," he said.
India is one of the world's biggest telecom markets with 942 million users and stiff competition among Reliance and rivals Bharti Airtel (BRTI.NS) and Vodafone Idea (VODA.NS). Data prices are among the cheapest in the world and internet connectivity has risen rapidly.
Deloitte predicts India’s satellite broadband service market will be worth $1.9 billion by 2030, making it lucrative for players like Starlink, Amazon and Ambani.
Scindia said Starlink and Amazon Kuiper's applications for a licence to launch satellite broadband services in the country were still under review.
VODAFONE IDEA
Musk has a reputation for disrupting markets. In Kenya, he priced Starlink at $10 per month, versus $120 in the United States, prompting a complaint by Kenya's Safaricom (SCOM.NR) last year.
A former aviation minister, Scindia is also overseeing many more telecom initiatives for Prime Minister Narendra Modi.
India's government owns a stake in Vodafone Idea, and the company in November disclosed it still had around $24 billion in dues owed to the government.
Scindia repeatedly declined to answer in the interview if there were any plans for relief on the outstanding dues.
The Indian government is, however, working towards reviving state-run telecom player, Bharat Sanchar Nigam Limited (BSNL), which lost market share amid fierce competition over the years, he said.
BSNL has 99 million users but is being supported with expanded offerings of 4G services.
