Government Confirms Auction-less Allocation of Spectrum, Which may Benefit Elon Musk

The Modi government confirmed in Parliament that it will administratively assign spectrum for satellite-based internet communications without auctions. The government claimed while replying to an unstarred question in Lok Sabha that “spectrum assigned administratively are also chargeable and hence contribute to revenue.” 

The BJP stormed into power in 2014 over a media frenzy triggered by the Congress government’s allocation of 2G spectrum via the administrative route. The Comptroller and Auditor General of India in its report in 2010 assessed a presumptive loss of ₹1.76 lakh crores for the exchequer because of the government's decision not to auction off spectrum. The then Congress-led government had arrested its own Telecom Minister and a leader of an alliance partner adding credibility to the allegations.  

Now, Congress leader Jairam Ramesh has criticised the ruling government on X, attaching a copy of the question asked in Parliament specifically inquiring about links between the administrative allocation of spectrum and Elon Musk's Starlink satellite telecom company's entry into India.

Though Minister of State for Communications P Chandra Sekhar has categorically denied the allegation that the government' move is meant to "facilitate the entry of Starlink into the Indian market", there is speculation in the telecom industry circles about the Starlink deal being an attempt by the Modi government to warm up to the Trump Administration. Musk is a very close associate of President-elect Donald Trump, who is known to be highly transactional in his dealings with foreign nations. Trump has already threatened a steep tariff on those countries which do not benefit the US in bilateral trade deals.

Meanwhile, any administrative allocation of satellite spectrum to Starlink would be a big blow to industry majors Reliance and Airtel, which have been advocating an open auction. Telecom Minister, Jyotiraditya Scindia, had in October responded to a telecom sector representation saying that spectrum could be allocated without auctions.