For the first time in India, the government will not be holding auctions while assigning spectrum for a communication network. This is going to pave the way for the entry of Elon Musk’s Starlink Satellite network in the country. The government has presented a new draft bill that will allow licensing of the spectrum instead of the traditional auction system that ensured a level playing field for all the competitors.
Elon Musk is the front runner when it comes to providing satellite internet services and definitely the person going to benefit the most from the proposed bill. The foreign companies like Starlink, Amazon’s Project Kuiper and OneWeb were demanding a licensing approach from the government.
It is going to disappoint the big players in India like Mukesh Ambani who has a stronghold on the telecommunication market of the country. Reliance Jio has earlier told the government that an auction would be a fair approach forward.
The foreign firms believe that an auction would encourage other countries to follow the same suit and this can potentially lower their profit margins by large.
