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Musk keen to launch India services, signed distribution

deals

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Starlink has sought 20 year satellite spectrum broadband

licence

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India wants to test market, give shorter licences,

official says

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Starlink to compete with Ambani's Reliance in India market

By Aditya Kalra and Munsif Vengattil

NEW DELHI, March 13 (Reuters) - India's telecom

regulator plans to recommend that satellite broadband spectrum

be allotted for around five years to assess initial market

adoption, defying Elon Musk's Starlink, which is seeking a

20-year permit, said a senior government source.

The Telecom Regulatory Authority of India (TRAI) is

currently working on key recommendations to the federal

government, including a time frame and pricing of satellite

spectrum, which will be administratively allotted.

Musk and Indian billionaire Mukesh Ambani forged a

partnership this week that will allow Starlink devices to be

sold in Ambani's Reliance stores, giving it large

distribution access. They were rivals earlier - Ambani's telco

subsidiary had unsuccessfully lobbied New Delhi for months to

auction spectrum, and not allot it administratively as Musk

wanted.

Starlink has pushed New Delhi to allot spectrum for 20 years

to focus on "affordable pricing and longer-term business plans",

while Reliance sought it for three years, after which it wants

India to reassess the market, according to their public

submissions.

Another Indian telco, Bharti Airtel, has also pushed for a

3-5 year period for the licence. Airtel and Musk have also

signed a distribution deal for Starlink, like Ambani's Reliance.

TRAI plans to agree to demands for a lower licence

time-frame "of around 5 years and then see how the sector

grows," said the senior government source, who declined to be

named as the decision-making process is confidential.

"This will help understand how the market stabilises, so

there's no point going beyond five years," said the official.

An industry source familiar with licensing processes said

the shorter time-frame will allow New Delhi to revise spectrum

prices after five years as the market develops.

TRAI did not respond to Reuters queries. Airtel, Reliance

and Starlink also did not immediately respond.

The government source added it will take about a month for

the TRAI to finalise its recommendations on the licence time-

frame and a per megahertz spectrum pricing, which will then be

submitted to India's telecoms ministry for further action.

Musk's deals with Reliance and Airtel are subject to

Starlink winning pending regulatory clearances in India, but

came weeks after Indian Prime Minister Narendra Modi met Musk in

Washington, where they discussed issues including space,

mobility, technology and innovation.

Ambani has been worried that his telecom company, which

spent $19 billion in airwave auctions, risks losing broadband

customers to Starlink and potentially even data and voice

clients later.

The satellite spectrum pricing "will be substantially lower"

than traditional telecom licences, which are granted via auction

for 20 years, the government official added.

KPMG estimates India's satellite communication sector will

grow more than 10 times in size to touch $25 billion by 2028.