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Reliance asked India to allocate spectrum via auction
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India decided to allocate spectrum, as wanted by Musk
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Reliance warns that could give others unfair advantage
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Musk India entry could spark price war with Reliance
By Aditya Kalra and Munsif Vengattil
NEW DELHI, Nov 15 (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 ( AMZN ) 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 ( AMZN ) 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.