Elon Musk may get a shock from the government of India!
India's telecom regulator TRAI has taken an important decision regarding satellite broadband spectrum. TRAI recommends that satellite spectrum be allocated for only 5 years, so that the initial market response can be understood. This decision is against the proposal of Elon Musk's company Starlink, in which it is demanding spectrum allocation for 20 years.
What is the whole matter?
A report published on business Standard has claimed, citing government sources, that TRAI is currently preparing to send its recommendations to the central government regarding the time frame and pricing of satellite spectrum. TRAI recommends that satellite spectrum be allocated for only 5 years, so that the initial market response can be understood. Apart from this, TRAI wants the spectrum to be allocated administratively, that is, direct allocation instead of auction.
Partnership with Jio
Meanwhile, Elon Musk and indian business tycoon mukesh ambani have recently entered into a partnership under which Starlink devices will be sold in Ambani's reliance stores. This will give Starlink large-scale distribution access. However, there have also been differences between the two companies over spectrum. reliance had demanded that the spectrum be allocated for only 3 years, while Starlink wants a 20-year permit.
What do other companies say?
Another major telecom company in India, Bharti airtel, has also recommended spectrum licenses for 3-5 years only. airtel has also signed a distribution deal with Starlink, as has Reliance. According to government sources, TRAI is going to accept the demand for spectrum allocation for 5 years to understand how the sector grows. An official said, "This will help in understanding the situation of the market stabilizing, so there is no point in giving more than 5 years."
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