Competition in India's Satellite Broadband Market:A Detailed Breakdown of English Grammar, Vocabulary and Phrases
The competition between two of the wealthiest individuals in the world, Elon Musk and Mukesh Ambani, is heating up as they gear up for a showdown in India's satellite broadband market.
The recent announcement by the Indian government, which stated that satellite spectrum for broadband will be distributed administratively instead of through auctions, has intensified this rivalry. Musk had previously criticized the auction approach favored by Ambani.
Satellite broadband offers internet connectivity across the satellite's coverage area, making it a viable solution for remote or rural regions where traditional services such as DSL or cable may be unavailable. This technology plays a crucial role in bridging the digital divide in hard-to-reach areas.
As of now, India’s telecom regulator has not yet revealed the pricing for the spectrum, and commercial satellite internet services have yet to launch. However, a report by credit rating agency ICRA predicts that the number of satellite internet subscribers in India could reach two million by 2025.
The market is highly competitive, with several key players, primarily led by Ambani’s Reliance Jio. Having invested heavily in airwave auctions to establish its dominance in the telecom sector, Jio has now teamed up with SES Astra, a prominent satellite operator based in Luxembourg.
In contrast to Musk’s Starlink, which employs low-Earth orbit (LEO) satellites positioned between 160 and 1,000 km above the Earth for quicker service, SES operates medium-Earth orbit (MEO) satellites at a much higher altitude, providing a more cost-effective solution. Ground receivers capture the satellite signals and convert them into internet data.
Starlink, owned by Musk, currently has 6,419 satellites in orbit and boasts four million subscribers across 100 countries. Musk has been trying to launch services in India since 2021, but has faced delays due to regulatory challenges.
If Starlink successfully enters the Indian market, it could enhance Prime Minister Narendra Modi’s initiatives to attract foreign investment, while also helping to improve the government's pro-business image in light of criticisms that its policies favor top Indian entrepreneurs like Ambani.
While auctions have previously proven profitable for the Indian government, officials justify their choice to allocate satellite spectrum administratively this time, arguing that it aligns with international practices. According to Gareth Owen, a technology analyst at Counterpoint Research, spectrum allocation by auction is not typical due to the high costs involved, which can hinder financial viability or investment in the sector. Administrative allocation, on the other hand, would facilitate a fair distribution of spectrum among qualified entities, allowing Starlink an opportunity to compete.
Ambani’s Reliance, however, contends that auctions are essential to foster fair competition, given the absence of clear legal guidelines in India regarding the direct provision of satellite broadband services to consumers. In correspondence with the telecom regulator earlier this month, Reliance emphasized the need for a “level playing field” between satellite and terrestrial services.
The company pointed out that recent advancements in satellite technology have blurred the distinctions between satellite and terrestrial networks, suggesting that satellite services are no longer limited to areas without terrestrial coverage. One letter from Reliance argued that, according to India’s telecom laws, spectrum should typically be allocated through auctions, with administrative allocation permitted only under specific circumstances related to public interest or other justifiable reasons.
Understanding Key Terms
The recent announcement by the Indian government, which stated that satellite spectrum for broadband will be distributed administratively instead of through auctions, has intensified this rivalry. Musk had previously criticized the auction approach favored by Ambani.
Spectrum refers specifically to the frequencies allocated for satellite communication, which is crucial for providing internet services.
An auction is a public sale in which goods or property are sold to the highest bidder.
The term intensified refers to the act of making something stronger, more intense, or more extreme.
Rivalry refers to a competition or conflict between individuals, groups, or entities that strive for the same goal or advantage.
Summary
The Indian government recently announced that it will give out satellite spectrum for broadband services directly, rather than selling it through public sale. This has made the competition between Elon Musk and Mukesh Ambani stronger, especially since Musk has previously criticized the auction method that Ambani supports.
Satellite broadband offers internet connectivity across the satellite's coverage area, making it a viable solution for remote or rural regions where traditional services such as DSL or cable may be unavailable.
Offers implies the act of making something available or proposing it for someone to accept or take advantage of.
The term viable refers to something that is capable of working successfully, being feasible, or being effective in achieving a desired outcome.
The term traditional refers to customs, practices, or beliefs that are passed down through generations within a culture or society.
The term unavailable means that something is not accessible, not present, or not obtainable at a particular time.
Summary
Satellite broadband provides internet access in areas covered by the satellite, making it a practical option for remote or rural locations where older services like DSL or cable are not available.
As of now, India’s telecom regulator has not yet revealed the pricing for the spectrum, and commercial satellite internet services have yet to launch.
The term revealed means to make something known, to disclose, announced or to uncover information that was previously hidden or not widely known.
Summary
Currently, India's telecom regulator has not announced the pricing for the spectrum, and commercial satellite internet services have not been launched yet.
The market is highly competitive, with several key players, primarily led by Ambani’s Reliance Jio. Having invested heavily in airwave auctions to establish its dominance in the telecom sector, Jio has now teamed up with SES Astra, a prominent satellite operator based in Luxembourg.
The term competitive refers to the state of involving competition or striving to gain an advantage over others.
The term dominance refers to the state of being in control, commanding authority, or having a significant influence over others.
The term prominent refers to something or someone that stands out, is well-known, noticeable, or has a significant presence or importance in a particular context.
Summary
The market is very competitive, mainly led by Ambani's Reliance Jio, which has invested significantly in airwave auctions to become a leader in the telecom sector. Jio has now partnered with SES Astra, a well-known satellite operator from Luxembourg.
Ambani’s Reliance, however, contends that auctions are essential to foster fair competition, given the absence of clear legal guidelines in India regarding the direct provision of satellite broadband services to consumers. In correspondence with the telecom regulator earlier this month, Reliance emphasized the need for a “level playing field” between satellite and terrestrial services.
The term contend means to struggle, compete, or assert a position in a dispute or competition.
The term foster means to encourage, promote, or nurture the development or growth of something.
The term absence refers to the state of being not present or not available in a particular place or situation.
The term correspondence can have several meanings depending on the context, but generally, it refers to communication or the relationship between things.
The term emphasized means to give special importance or attention to something, making it stand out or more noticeable.
The phrase level playing field refers to a situation where all participants have an equal opportunity to compete, ensuring fairness and eliminating any advantages or disadvantages among them.
Summary
Reliance, led by Ambani, argues that auctions are necessary to ensure fair competition due to the lack of clear legal guidelines in India for providing satellite broadband services directly to consumers. In recent communications with the telecom regulator, Reliance highlighted the importance of creating a "level playing field" between satellite and terrestrial services.