New Delhi:

India’s decision to allocate satellite spectrum, rather than auction it, will give consumers more choice, the telecoms minister said on Monday, playing down concern by Mukesh Ambani’s Reliance Jio that it could lose out to Elon Musk’s Starlink.

Starlink has long wanted to launch in India and has in recent months clashed with billionaire Ambani’s company over how the country should grant spectrum for satellite services.

Reliance had urged an auction but the Indian government sided with Musk who wanted it to be allocated administratively, in line with global trends. Analysts say an auction, requiring much more investment, would likely deter foreign rivals.

Ambani said he wanted a level playing field and has been worried that his telecom company, which spent $19 billion in airwave auctions, now risks losing broadband customers to Starlink and potentially even data and voice clients later as technology advances.

“My job as telecoms minister is to make sure that you have as many choices as possible,” Jyotiraditya Scindia told Reuters during an interview at his ministry’s office in New Delhi.

Asked if there was merit in Reliance’s concerns, he said, without naming any company: “Technology is never constant”, adding that companies need to keep evolving.

Scindia noted that current satellite technology for communications requires devices to have the sky in their sight, and smartphones cannot use that technology for indoor services that are provided by terrestrial networks.

“The minute you come into this building, you’re done,” he said.

India is one of the world’s biggest telecom markets with 942 million users and stiff competition among Reliance and rivals Bharti Airtel and Vodafone Idea. Data prices are among the cheapest in the world and internet connectivity has risen rapidly.

Deloitte predicts India’s satellite broadband service market will be worth $1.9 billion by 2030, making it lucrative for players like Starlink, Amazon and Ambani.

Scindia said Starlink and Amazon Kuiper’s applications for a licence to launch satellite broadband services in the country were still under review.

VODAFONE IDEA

Musk has a reputation for disrupting markets. In Kenya, he priced Starlink at $10 per month, versus $120 in the United States, prompting a complaint by Kenya’s Safaricom last year.

A former aviation minister, Scindia is also overseeing many more telecom initiatives for Prime Minister Narendra Modi.

India’s government owns a stake in Vodafone Idea, and the company in November disclosed it still had around $24 billion in dues owed to the government.

Scindia repeatedly declined to answer in the interview if there were any plans for relief on the outstanding dues.

The Indian government is, however, working towards reviving state-run telecom player, Bharat Sanchar Nigam Limited (BSNL), which lost market share amid fierce competition over the years, he said.

BSNL has 99 million users but is being supported with expanded offerings of 4G services.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

India’s internet and telecom sector is likely to get a new entrant – Elon Musk’s Starlink – a game-changer for internet users in the world’s most populous country. Elon Musk will be taking on behemoths like Mukesh Ambani’s Jio and Sunil Bharti Mittal’s Airtel besides national carrier BSNL to provide ultra-high speed connectivity to Indian users.

Whether or not he will be able to match Jio and Airtel on pricing is yet to be seen. India currently has the world’s lowest pricing in terms of broadband and WiFi internet. Elon Musk, currently the world’s richest person, may aim to compete aggressively in the world’s most vibrant internet data market.

Starlink, which provides wireless internet service with the help satellite constellations in near-Earth orbit, is currently seeking the required security clearances for a licence to offer satellite broadband services in India and is expected to get a permit should it satisfy authorities of the conditions laid out, the telecom minister said today.

Starlink has been looking to enter India for years and its plans got a major boost last month when New Delhi said it wouldn’t auction spectrum for satellite broadband but rather award it administratively – just as Elon Musk wanted. Rival Indian telecom billionaire Mukesh Ambani had wanted an auction.

India’s Telecom Minister Jyotiraditya Scindia confirmed today that Starlink is in the process of obtaining the necessary security clearance, which requires it to satisfy the Government of India that the company processes and stores all data locally in India, and that its satellite signals are encrypted and 100 per cent secure.

“When you check all the boxes, you get the licence. If they (Starlink) do that, we will be very happy,” Mr Scindia said.

Mukesh Ambani’s Reliance Jio currently dominates India’s broadband market with more than 14 million wired subscribers. Jio also has a user base of nearly 500 million mobile internet users. Airtel too has close to 300 million broadband subscribers. However, they are concerned that after spending more than 20 billion dollars in spectrum auctions, they now have the risk of losing customers to Elon Musk’s Starlink as satellite technology advances.

As per a Reuters report, Reliance Jio already has the necessary clearances to launch its own satellite broadband service, but hasn’t done so yet. Starlink has now informed the Government of India that it is willing to comply with India’s rules and regulations for security, data storage, and servers.

When Reliance Jio had first launched services, Mukesh Ambani, then Asia’s richest person, had offered broadband services for free to all subscribers to capture a majority market share. Elon Musk, who is the world’s richest person is now adopting a similar strategy – In Africa, Musk offers Starlink services for as little as $10 (roughly Rs 800) per month. In the US, Musk offers the same Starlink service for as much as $120 (roughly Rs 10,000) per month.
 

Reliance Jio has urged telecom regulator TRAI to come up with a revised paper on spectrum allocation for satellite communication alleging that it ignores the key point of ensuring level-playing field between satellite and terrestrial services.

In a letter to the Telecom Regulatory Authority of India (TRAI) Chairman, Anil Kumar Lahoti, Reliance Jio has sought revision of the consultation paper on recommending rules for “terms and conditions for the assignment of spectrum for certain satellite-based commercial communication services”.

“We are surprised that the consultation paper has completely overlooked the critical issue of ensuring level-playing field between satellite-based and terrestrial access services. This omission has resulted in the lack of any questions addressing the need to create a level-playing field between these services,” Reliance Jio (RJIL) said in a letter dated October 4.

Jio said that due to the omission of this point, stakeholders will not be able to adequately consider and provide relevant inputs to TRAI which will undermine the fairness of recommendations and the government’s intent to promote balanced competition.

On September 27, 2024, TRAI floated a consultation process to explore methodology and price for assigning spectrum to satellite companies to provide calling, messaging, broadband and other services in the country.

The decision on spectrum price and allocation methodology will pave the way for satellite-based broadband services from companies like Elon Musk-owned Starlink, Bharti Group-backed OneWeb, and Jio Satellite Communications, across India.

Jio said the consultation paper does not adequately address competitive fairness and is not aligned with Department of Telecommunications (DoT) reference dated July 11, 2024 which makes the consultation paper and the consequent recommendations vulnerable to legal challenges.

Jio and Vodafone Idea have opposed allocation of spectrum to satellite companies without auction.

Jio alleged that the paper is tilted towards administrative spectrum assignment which undermines norms of The Telecommunications Act, 2023.

It said that the Telecommunication Act, 2023 emphasizes auction as the default method for assigning spectrum for commercial services.

“We respectfully urge TRAI to reconsider and revise the consultation paper, incorporating specific questions that address the level-playing field issues between satellite and terrestrial networks. Both auction and administrative assignment methods should remain open for stakeholders input, with due consideration given to competitive fairness,” Jio said.

TRAI has invited comments on 21 points, including a method for determining spectrum charges, frequency bands for the satellite communications services, duration of assignment, and provision for surrendering spectrum, etc.

The regulator has fixed October 18 for comments and October 25 for counter comments on the paper.

After telecom operators, Scindia met telecom equipment makers including Dixon Technologies, Nokia, Ericsson, Sterlite Technologies and VVDN [File]
| Photo Credit: REUTERS

Telecom operators in a meeting with Union Minister Jyotiraditya Scindia expressed concerns over regulator Trai excluding messaging and calling apps like WhatsApp and Telegram in its recommendation on new licensing rules, sources aware of the development said.

Operators also discussed issues concerning adjusted gross revenue payments, they added.

The meeting was attended by Reliance Jio Chairman Akash Ambani, Vodafone Idea CEO Akshaya Moondra, Bharti Airtel MD and CEO Gopal Vittal and BSNL Chairman and Managing Director Robert J Ravi.

“All telecom operators expressed concern over the exclusion of over-the-top apps by Trai in its recommendation on Service Authorisation. Vodafone Idea and Bharti Airtel raised the issue of adjusted gross revenue,” a source said.

Telecom operators have been demanding for a long time to bring calling and messaging apps, called as OTTs, under the ambit of telecom licences as they provide calling and messaging services like any telecom operator.

The Telecom Regulatory Authority of India (Trai) did not heed to the demand of telecom operators and kept the apps out of its recommendation on the new licensing rules under the Telecommunications Act 2023.

Vodafone Idea (VIL) shared its concern on the impact of adjusted gross revenue (AGR) issue on the health of the sector, which was also supported by Bharti Airtel.

Last week, the Supreme Court rejected the VIL curative petition on the grounds that it did not meet the criteria for the petition.

VIL has an AGR liability of ₹70,320 crore and Bharti Airtel has about ₹21,500 crore.

Scindia during the meeting discussed the menace of pesky calls and SMS.

“The operators have some concern over unsolicited commercial calls which the DoT has taken note of,” the source said.

After telecom operators, Scindia met telecom equipment makers including Dixon Technologies, Nokia, Ericsson, Sterlite Technologies and VVDN.

Jio’s arm Radisys and Tech Mahindra are working with Ghana’s Next-Gen Infrastructure Company (NGIC) to build the infrastructure needed to deliver affordable 5G mobile broadband services in the African country. Representational
| Photo Credit: KRISHNAN VV

Ghana has signed deals with a Reliance Jio subsidiary, Tech Mahindra, and other vendors to build 4G and 5G infrastructure as the African country aims to enhance its telecom capabilities.

Ghana’s state-backed Next-Gen Infrastructure Company (NGIC) has partnered with Jio’s arm Radisys, Tech Mahindra and Nokia to build the necessary infrastructure for delivering affordable 5G mobile broadband services.

India a ‘strategic choice’

Ursula Owusu-Ekuful, the West African country’s Minister for Communication and Digitalisation, told reporters in Mumbai that India was a “strategic choice” due to its similar demographics and Ghana wants to replicate the Indian story on telecom penetration.

“Your (India’s) demographics are just like us, the Jio model was rolled out just a few years ago, so the learnings are still fresh,” she added.

NGIC has been allocated 5G spectrum and local telcos will be utilising the shared infrastructure to roll out the services in the next six months. As per reports, the overall contract is over $200 million.

Ms. Owusu-Ekuful said Ghana is a part of the 33-nation Smart Africa alliance, and other countries in the continent will be closely watching the rollout to see whether they can also emulate the same locally.

When pointed out that Indian vendors have not executed such deals in the past and why Ghana chose them over the Chinese suppliers, she said, “It was a strategic choice for us. We don’t want to get caught up in any of the geopolitics that is currently going on. We want what is the best for our national interest.”

“Ghana wants to leverage India’s experience in the field,” she added.

Speaking on the deal, Radisys’ Chief Executive Arun Bhikshesvaran said, “Our communications platform and digital applications will help create new digital experiences that empower the Ghanaian community and foster sustainable and inclusive development.”

A statement said the lives of Ghanaians will be enhanced across various spheres including education, healthcare, and digital payments through the modern telecom network.

The Ghana’s minister said the country is looking at both the 4G and 5G networks, and also satellite connectivity to deepen its telecom penetration, and added that it is in talks with Elon Musk’s Starlink for the latter.

Jio’s rival in the local market Bharti Airtel is one of the most prominent mobile network operators in the African continent.

Debt-laden telecom operator Vodafone Idea Ltd. has raised ₹18,000 crore.
| Photo Credit: Reuters

Telecom operator Vodafone Idea’s (VIL) board has fixed the follow-on public offering (FPO) offer price at ₹11 per equity share, according to a regulatory filing.

The anchor investor offer price of ₹11 per equity share has also been greenlit by the board.

“… Following resolutions were also passed… determined and approved the offer price of ₹11 per equity share… approved the anchor investor offer price of ₹11 per equity share,” VIL informed.

Debt-laden telecom operator Vodafone Idea Ltd. has raised ₹18,000 crore pulling off India’s largest-ever FPO as the issue got subscribed nearly seven times after institutional investors poured in money, stock exchange data showed on April 22 evening.

The fundraise will arm VIL with an ammo to improve its competitive positioning in the Indian telecom market, where it trails Reliance Jio and Bharti Airtel, by a wide margin.

“Further to our letter dated 17 April 2024, intimating you about the meeting of the board of directors of the company to be held on 22 April 2024, in respect of the offer, we wish to inform you that the Board, at its meeting held today that is 22 April 2024 has approved and adopted the prospectus dated 22 April 2024 in connection with the offer,” VIL said.

The prospectus has been filed with the Registrar of Companies, Gujarat at Ahmedabad, and submitted to the Securities and Exchange Board of India, BSE Limited and National Stock Exchange of India Limited, it added.

Akash Ambani. File
| Photo Credit: The Hindu

“Telecom major Reliance Jio has deployed 85% 5G network in India and has the capability to deploy one 5G cell in every 10 seconds,” the company’s Chairman Akash Ambani said.

According to a statement released by broadband speed and quality measurement firm Ookla, the Reliance Jio chairman said the company has covered the entire country with a 5G network ahead of the promised time frame of December 2023.

Indians willing to pay a premium for elevated 5G experience

“I am particularly proud of our speed of the committed True 5G roll-out. Today, we have covered the entire country with a robust True 5G network ahead of our promised time frame of December 2023. Eighty five per cent of the entire 5G deployment in India is made by Jio. We continue to deploy one 5G cell every 10 seconds,” Mr. Ambani said.

According to the Department of Telecom, more than 3.38 lakh base stations for 5G have been deployed across the country.

“Over the past seven years, we’ve set several global benchmarks, propelling India into digital prominence. Today, our ambitions are even higher, and our faith in India’s digital future is as strong as ever. We remain fully committed to achieving the full potential of a digital India, and to help India become a leader on the global stage,” Mr. Ambani said.

Ookla on Sunday said Jio has emerged as the number one network in India, winning all nine Speedtest awards presented by Ookla for mobile networks in the market, including all awards for 5G networks.

“Jio has emerged as the #1 Network in India, winning all nine awards for Mobile Networks in the market, including all awards for 5G networks. This is a first for any service provider anywhere in the world,” Ookla said.

“Jio won awards for the best mobile network, fastest mobile network, best mobile coverage, top-rated mobile network, best mobile video experience, best mobile gaming experience, fastest 5G mobile network, best 5G mobile video experience, and best 5G mobile gaming experience,” Ookla said.

“We are pleased to recognise Jio’s efforts in providing the best customer experience in speed, video, and gaming to their customers. These awards and this recognition makes them the most awarded network in India, reaffirming Jio’s ambition to offer the best-in-class network to their consumers,” Ookla President and CEO Stephen Bye said.

Representational image
| Photo Credit: Reuters

Jio Infocomm, the telecom wing of Reliance Industries, is in talks to raise up to $2 billion in offshore loans, with BNP Paribas acting as lead arranger, to fund the purchase of 5G network gear from Ericsson, the Economic Times reported on Monday.

BNP Paribas will provide $1.9 billion-$2 billion over a nine-month period, during which the telecom company, led by Mukesh Ambani, will pay back Ericsson, BNP and some other banks, the newspaper said, citing a person familiar with the matter.

The report neither mentioned the individual amounts that Jio will pay back to Ericsson, BNP and other entities in the loan deal nor clarified whether BNP was acting on behalf of a consortium.

The fundraise is through a discounted process, and the implicit interest rate will be arrived at over the nine-month period, the report said.

BNP Paribas and Jio Infocomm did not immediately respond to Reuters’ request for comment.

Swedish telecommunications firm Ericsson, in October last year said that its 5G Radio Access Network (RAN) products and solutions will be deployed in Jio’s 5G rollout in India.

Jio had tied up with Swedish export credit agency EKN for a $2.2 billion funding to finance the equipment and services for the 5G plan, the Indian conglomerate said in its latest annual report.

“The $2.2 billion cover from EKN will likely reduce Jio’s overall 5G gear funding costs as global lenders and 5G equipment supplier involved in such a large deal will be more comfortable,” ET said, citing another source.

Jio has been in loan talks to help finance its 5G rollout, including reports of signing a deal with Nokia for $1.7 billion.

Unutilized Delhi:

Reliance Jio’s 5G services and products marks the fastest-ever rollout of this scale anyplace on the earth, and the corporate is “on track” to barricade all the nation with the extremely high-speed community by means of December this month, RIL Chairman Mukesh Ambani mentioned on Monday.

JioAirFiber might be introduced on Ganesh Chaturthi, September 19, Mr Ambani mentioned on the forty sixth AGM of Reliance Industries.

Jio buyer bottom has crossed 450 million. Its 5G community covers 96 in keeping with cent of cities and the corporate is heading in the right direction to barricade all the nation by means of December.

“Jio’s overall customer base has now crossed the milestone of 450 million subscribers, reflecting a year-on-year revenue growth of over 20 per cent,” he mentioned.

The per-user knowledge intake on Jio’s community has surged, with the common consumer now eating over 25 GB each and every moment.

Mr Ambani mentioned that Jio used to be introduced seven years in the past with a project to develop into Republic of India right into a Premier Virtual People, and added “we have invested our heart and soul into building a Digital Public Infrastructure which the entire world has begun to admire.” Jio has been the principle catalyst of Unutilized Republic of India’s impressive virtual transformation, he asserted.

“Now our ambitions are even higher — and they go beyond the shores of India, as I shall explain. Let’s first discuss Jio True 5G, our pioneering 5G broadband offering. We began our 5G rollout last October. In just nine months, Jio 5G is already present in over 96 per cent of the census towns of our country,” Mr Ambani mentioned.

Jio is heading in the right direction to barricade all the nation by means of December this month.

With over 50 million 5G shoppers, Jio is already eminent in 5G adoption in Republic of India, Mr Ambani mentioned.

“And we are the only company with the capacity to smoothly transition our entire 4G customer base to 5G, with minimal additional capital expenditure. With the growing adoption of Jio 5G, we are also seeing an increasing trend of high-ARPU, post-paid customers choosing Jio as their preferred network,” Mr Ambani mentioned.