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Telstra, TPG Telecom clash with Musk’s SpaceX over Starlink spectrum guarantee

The ASX-listed telcos argue satellite mobile frequency licences should be allocated in a competitive manner to avoid consumers being locked in with a dominant provider.

SpaceX claims it won’t provide satellite-based mobile services to Australia if it isn’t allocated a network licence directly. Timon Schneider / SOPA Images.

ASX-listed telcos Telstra and TPG Telecom have both urged the government to run a competitive process for satellite spectrum licences despite a warning from Elon Musk’s SpaceX that it will withhold Starlink mobile services from Australia if it isn’t granted priority access to crucial wireless airspace.

The mobile network operators argue that a competitive process for spectrum licences would drive costs down, rather than entrenching Starlink’s dominant position for providing satellite-based connectivity.

A TPG Telecom spokesperson told Capital Brief "there are always clear risks around market concentration if policy settings favour a single operator”.

“It is critical that spectrum and policy settings encourage multiple satellite providers, multiple commercial models, and genuine competition, rather than reinforcing dominance by any one provider, whether they are a satellite or mobile provider,” the TPG spokesperson said.