Starlink is facing pushback from Indian telecom giants Reliance Jio and Bharti Airtel over proposed low pricing for satellite spectrum.
A group representing the two companies warned that low fees for satellite internet providers like Starlink could hurt traditional telecom businesses.
India’s telecom regulator suggested in May that satellite providers should pay 4% of their annual revenue to the government. Starlink has argued against spectrum auctions and pushed for administrative licensing, arguing that spectrum is a natural resource that should be shared, in line with a global trend.
The Cellular Operators Association of India, in a letter dated May 29, urged the telecom ministry to review the pricing plan. The group stated that telecom firms already pay high upfront fees through auctions, resulting in their overall spectrum payments being around 21% higher than those of satellite providers.
“The price per MHz should be equal or at least similar when offering the same services to the same consumers,” the group wrote. It added that satellite services can become a strong and affordable competitor to traditional broadband.
Reliance and Airtel have invested nearly $20 billion in recent years to acquire 5G spectrum through auctions. Industry sources say they are worried about paying more to deliver similar wireless broadband services as satellite firms.
Reliance had previously lobbied the government to auction satellite spectrum instead of assigning it administratively, but it was unsuccessful.
Despite competition, both Reliance and Airtel signed distribution agreements for Starlink equipment in March. However, once Starlink launches its services in India, it will directly compete with them.
The telecom ministry is still reviewing the pricing recommendations. According to India’s telecom minister, Starlink is close to receiving its license.
