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The Supreme Court reportedly stated that there is no constitutional mandate for the distribution of natural resources by auction. The apex court emphasised that the auction process should not be skipped without a valid reason.
Reliance Jio and Vodafone Idea (Vi) have been outspoken about the necessity for spectrum to be auctioned off instead of being distributed informally. Jio has since sent the Telecom Regulatory Authority of India (TRAI) a second legal opinion about the matter. The second legal opinion provided to TRAI, according to a Business Standard story, was prepared by former Supreme Court Justice L Nageshwara Rao. Rao has argued in favour of the spectrum auctions in the letter. Rao contends that any alternative strategy for making spectrum available to interested parties would be unconstitutional.
The satellite communication service providers and tech firms favour administrative spectrum distribution. However, the telcos (apart from Airtel) believe it to be unjust. Rao concentrated on the earlier ruling the Supreme Court rendered in the 2G issue in his letter. To ensure complete openness, the telecom agency withdrew the first-come, first-served policy it had previously implemented and replaced it with an auction system.
The Supreme Court reportedly stated that there is no constitutional mandate for the distribution of natural resources by auction. The apex court emphasised that the auction process should not be skipped without a valid reason. Another former Supreme Court Justice, KSP Radhakrishnan, who supported the spectrum auctions, wrote another letter last week to the telecom regulator on behalf of Jio.
The satellite industry, however, is opposed to the spectrum auction. This is due to the fact that it would harm their current investments in India, and they have stated that there are several nations where the satellite players can obtain the spectrum legally.
Even The world’s richest man, Elon Musk, is keen to bring his Starlink satellite broadband to India, but Mukesh Ambani, who owns Reliance Jio, the largest telecom company in India, and is the richest man in Asia, is putting up a fierce fight against him.
Elon Musk's Starlink and Ambani’s Reliance disagree over how the government distributes satellite broadband spectrum, setting up a conflict between two of the richest men in the world over satellite services in the country with the largest population.
Both are competing for the Indian internet market. For the right to introduce satellite broadband services in India, Starlink and Jio are in competition for spectrum distribution. In order to provide a level playing field for domestic and international companies in the traditional telecom sector, Ambani insists on an auction while Musk pushes for licencing.