Mukesh Ambani vs Elon Musk

 Mukesh Ambani vs Elon Musk- 

Satellite Spectrum War for Indian Broadband Market

A new type of Internet technology is coming in India which will make every corner of India to accessible to Internet. And with this a war started between two internet service providers.

To understand this first you need to understand difference between communication system based on Territory Spectrum and Satellite Spectrum

Territory Spectrum based communication-

The current mobile and broadband service which we are using in India are based on Territory Spectrum.

Territory Spectrum used for ground-based communication systems like cellular networks (4G, 5G), TV and radio broadcasting, and wireless communication (Wi-Fi). Data is transferred by Mobile towers and optical fiber cables so they are dependent on signals availability.

Communication based on Satellite Spectrum-

In place of mobile towers and optical fiber network here communication happens between Earth and satellites. The GPS that you used is based on satellite spectrum. Since no mobile tower and cable needed here so by this technology mobile network and internet can be accessed in every corner. You are going on in Train or in forest or even on Antarctica you can access internet by this.

Currently in India we only have territory based cellular and internet service. Last year Govt of India passed the Telecommunication Bill and decided to start Satellite based service also in India to increase mobile penetration in every corner. Now question was how Spectrums will be allotted?

There are two methods

1. Auction method

2. Administrative method

In auction method, Govt auctions spectrum and mobile operators buy the spectrum by placing high prices. Territory based services were allotted by this method only. The current service providers in India are

Jio

Airtel

Vodaphone

They all got spectrum by auction method only.

But in Satellite based spectrum there is a twist

You can claim on territory but you cant claim on Space. You cant say this one is India's space, This one is China's. So you cant auction satellite spectrum since you don't own space so worldwide practice is administrative based allotment. That means Govt fix the prices and any one can pay prices and can get the spectrum.

Lets return to the story

Govt passed Telecom bill for satellite spectrum. The biggest Satellite spectrum based service provider in the world is Elon Musk's StarLink

So this decision of Indian Govt opened the doors for StarLink in India. But in between a news published that Jio's owner Mukesh Ambani is lobbying for Auction route with Indian Govt. If Indian Govt goes for auction route then StarLink will be eliminated coz they wont be able to fulfil technical qualifications. So it made Elon Musk furious and he started to attack Mukesh Ambani.

Reliance set up Jio Space Technology with with Luxembourg based company, SES. Sunil Mittal-backed Bharti acquired a majority stake in OneWeb. Both promised to do what StarLink does.

But here is a big difference

Jio-SES have 38 satellites

One web has 630 satellites

StarLink has 6000 satellites

So Ambani's Jio cant compete with StarLink. But Indian govt didn't listen Mukesh Ambani and chose global practice and that administrative order based spectrum allotment and it made Elon Musk Happy. Elon Musk posted this on 16th October and said StarLink is soon coming to India. Now the question is- 

Will Elon Musk's StarLink be able to penetrate Indian market and will eat customers of Jio and Airtel ?

All depends upon pricing

Currently in India, Broadband Prices are around Rs 1000 per month

StarLink is costly in USA but Elon Musk can offer discounted prices in India and can capture Indian market.

Speed is definitely higher in StarLink.

It can be accessed from anywhere. No need of mobile tower or optical fiber for it.

Future will tell what happens

So this was whole Mukesh Ambani vs Elon Musk case.