India May Limit Starlink’s Satellite Spectrum to 5 Years, Defying Musk’s 20-Year Request

India’s telecom regulator, TRAI, is set to recommend a five-year allocation for satellite broadband spectrum, challenging Elon Musk’s Starlink, which sought a 20-year permit. This move aims to assess market adoption before making long-term commitments, a senior government source revealed.

TRAI is finalizing key recommendations, including spectrum pricing and duration, for submission to India's telecom ministry. While Starlink argues a 20-year term ensures affordability and stable business planning, Reliance, owned by Mukesh Ambani, proposed a three-year term with a market reassessment. Bharti Airtel, another key telecom player, favors a 3-5 year timeframe.

Musk and Ambani, once rivals over spectrum allocation, recently partnered to sell Starlink devices in Reliance stores, expanding its market reach. Airtel has also inked a Starlink distribution deal. Despite these partnerships, Ambani remains concerned that Starlink could lure away broadband and telecom users, especially after his company spent $19 billion in spectrum auctions.

The Indian government sees a shorter allocation period as a way to monitor industry growth and adjust spectrum pricing after five years. Unlike traditional telecom airwaves, which are auctioned for 20 years, satellite spectrum prices will be “substantially lower,” according to officials.

The final TRAI recommendations, expected within a month, will determine spectrum costs and the licensing framework. Meanwhile, Starlink’s India operations are pending regulatory clearance, despite Musk’s recent meeting with Prime Minister Narendra Modi in Washington, where they discussed space, technology, and innovation.

With India’s satellite communication market projected to grow tenfold to $25 billion by 2028, the telecom industry is bracing for a transformative shift in connectivity and competition.