Elon Musk reacts to competition in satcom market in India vs Reliance Jio and Airtel

Elon Musk has asked for ‘fair competition’ in the Indian telecom market. The tech billionaire said this while replying to a post shared on the social media platform X (earlier Twitter). The post mentioned that Indian telecom majors Reliance Jio, Airtel and Vodafone Idea’s (Vi) request to the government to ensure a level playing field in the satcom sector as it moves forward with licensing and spectrum allocation for Elon Musk’s Starlink service. The companies asked the government to offer comparable spectrum pricing to avoid what they describe as "market distortions” to satellite operators in the country.

Replying to the request made by Indian telecom majors to the Telecom Regulatory Authority of India (TRAI), Musk wrote: “Fair competition would be much appreciated”

In a petition to the government, the telecom majors accused TRAI of failing to address the competitive imbalance between satellite and terrestrial spectrum allocation.
“Comparable spectrum pricing to terrestrial services should be enforced for competing satellite services in urban/semi-urban/rural areas for retail/enterprise customers,” the telecos representative wrote in the letter.
The telcos argued that satellite operators offering similar services should adhere to the same pricing, regulatory levies, and fees as terrestrial telecom providers.
Under the telecom law passed in December 2023, satellite spectrum is allocated administratively for a fee, unlike terrestrial spectrum, which is auctioned. However, TRAI is still finalising the specific details of pricing and allocation.
Jio and Airtel have also raised concerns over low-earth orbit (LEO) mega-constellations, arguing that their broadband speeds and capacity are comparable to terrestrial networks.
“Given the oversupply of broadband capacity that these entities are bringing to market, they will distort competition of terrestrial broadband, especially in urban/semi-urban areas serving retail/enterprise customers,” the petition noted.
The telcos also recognised that satellite spectrum should be allocated administratively at reduced prices for non-competing uses, such as government functions, disaster recovery, cellular backhaul, and sectors like defence, maritime, and aviation. However, these companies maintained that commercial satellite operators should not be granted preferential pricing.