Consumers will get more options for broadband internet through satellite spectrum policy.

The central government has decided to allocate satellite spectrum instead of auctioning it. Telecom Minister Jyotiraditya Scindia says that this will give more options to consumers. He has refuted Reliance Jio’s apprehension that it will benefit Elon Musk’s Starlink.

Starlink had sought permission from the government to start this service in the country. For the last few months, Starlink was in dispute with Mukesh Ambani’s Reliance Jio regarding the process of allocating spectrum for satellite internet service. Reliance Jio had demanded an auction for satellite spectrum. However, the government has decided to allocate this spectrum as per the international trend. Analysts say that auctioning this spectrum would have required more investment and this could have led international telecom companies to step back. A unit of e-commerce and technology company Amazon had also sought approval to launch satellite internet service in the country.

Reliance Jio wanted equal conditions of competition for this. The company is worried that it will face a tough challenge from Starlink and its broadband customers may switch to Starlink. Regarding this, Scindia said, “As Telecom Minister, my job is to ensure that consumers have more options available.” Asked about Reliance Jio’s apprehensions, Scindia said without naming any company, “Technology does not remain static. Companies need to make changes.”

To start satellite internet services, telecom companies will need to obtain security clearance as well as approval from several ministries. Reliance Jio has connected four remote areas with its JioSpaceFiber service. These fields are Gir in Gujarat, Korba in Chhattisgarh, Nabarangpur in Odisha and Jorhat in Assam, ONGC said. Foreign internet service companies had demanded license for this spectrum. These companies believe that if there is an auction for this in India, then this process can be implemented in other countries also. Due to this, these companies may have to face increase in costs.