India has proposed a licensing model to assign spectrum for satellite internet services that would exempt corporations from having to bid for it, a victory for Elon Musk's Starlink company, which has campaigned hard against any auctions.

The plan, contained in a new telecom bill introduced in parliament on Monday, seeks to exclude corporations from having to bid for spectrum, a victory for Elon Musk's Starlink and other global players such as Amazon's Project Kuiper and OneWeb.

The decision is viewed as a blow to Reliance Jio, the biggest telecom company in India and owned by Mukesh Ambani.

Reliance Jio has maintained that an auction would be the best method of allocating spectrum, similar to the allocation of 5G spectrum in India, while international businesses have been pushing for a licensing model.

Although the action would be welcomed by Starlink and its international counterparts like Amazon's Project Kuiper and the British government-backed OneWeb, it is a blow to Asia's richest man, Mukesh Ambani, who is in charge of the Indian telecom behemoth Reliance Jio.

Worldwide companies have been pressing for a licensing strategy as they fear that India's unique auction will encourage other countries to follow suit, driving up costs and investments.

The largest telecom provider in the nation, Reliance Jio, disagrees, telling the government that an auction—which is akin to the distribution of 5G spectrum in India—is the best course of action. Reliance had maintained that to create a level playing field, there needs to be an auction. Foreign satellite service providers might compete with established telecom companies by providing voice and data services.

Deloitte projects that by 2030, the Indian market for satellite broadband services would have grown to $1.9 billion, growing at a rate of 36 percent annually.

On the basis of national security, the government of India is also authorized by the draft telecom bill unveiled on Monday to halt or outright forbid the use of telecom equipment from particular nations.