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Senate Commerce Committee chair Ted Cruz on Tuesday asked U.S Director of National Intelligence Tulsi Gabbard to investigate if China is covertly working to prevent Congress from extending authority to auction wireless spectrum.

In 2023, the Federal Communications Commission lost the broad authority from Congress for wireless spectrum sales and lawmakers are considering legislation that would approve new auctions to free up spectrum for growing wireless use.

“China is actively working to capture global leadership in this area and ensure the next generation of global telecommunications technologies live and work on a technological backbone of their making,” Cruz said in a letter seen by Reuters.

Cruz said on Tuesday that he is working to get spectrum auction authority attached to broad tax legislation Congress is expected to take up in the coming months.

China has announced it would open more spectrum bands for future 5G and 6G wireless use while the United States is debating next steps, Cruz noted.

“Freeing up spectrum for commercial use in the United States is not just important for our economic growth; it is critically important for our global leadership,” Cruz wrote.

He said a new spectrum auction could raise $100 billion or more.

“If we do not catch up and lead, it will be Huawei that creates the backbone of tomorrow’s global communication networks through which much of the world’s economic traffic — and indeed, much of our government’s traffic — will flow,” Cruz said.

China-based Huawei, the world’s largest telecommunications equipment maker, did not immediately respond to a request for comment.

The FCC will re-auction spectrum to provide nearly $3.1 billion for U.S. telecom companies to remove equipment made by Huawei and ZTE.

Last week, FCC Chair Brendan Carr said the commission is investigating nine Chinese companies including Huawei, ZTE China Mobile and China Telecom to determine if they are seeking to evade U.S. restrictions.

It is the latest in a series of actions against Chinese telecom and technology firms by Washington. The FCC previously barred the Chinese companies from providing telecommunications services in the United States, citing national security concerns. Reuters

India will scrap a tax of 6 per cent on digital advertisements online, the finance minister said on Tuesday, easing costs for U.S. tech giants such as Alphabet’s Google, Meta and Amazon as a way of soothing U.S. trade concerns.

The move responds to concerns raised by Washington after President Donald Trump threatened reciprocal tariffs from April 2 on trading partners, including India, that fuelled alarm among exporters.

Finance Minister Nirmala Sitharaman unveiled the change while introducing amendments to the 2025 Finance Bill in the lower house of parliament, which approved the tax measures in the budget.

“(I) have proposed to remove (the) 6 per cent equalization levy for advertisements,” she told parliament.

The decision on the levy takes effect from April 1, a government source said earlier, speaking on condition of anonymity.

During Prime Minister Narendra Modi’s visit last month to the United States, both nations agreed to work on the first phase of a trade deal by autumn 2025, targeting two-way trade of $500 billion by 2030.

India’s 6 per cent equalisation levy, or digital tax, affects online advertising services provided by foreign companies, requiring them to withhold and remit the tax to the government.

The United States Trade Representative (USTR) had criticised the levy targeting U.S. companies as “discriminatory and unreasonable”, arguing that domestic companies were exempt.

A U.S. delegation led by Brendan Lynch, the assistant U.S. trade representative for South and Central Asia, is visiting India this week for talks with officials.

Last year, New Delhi abolished a levy of 2 per cent on non-resident e-commerce firms for providing online services.

Analysts said the new measure was likely to provide relief to U.S. tech companies.

The decision signals an attempt to ease trade tension with the United States, said Amit Maheshwari, tax partner at AKM Global.

“However, it remains to be seen whether this step, coupled with ongoing diplomatic efforts, will lead to any softening of the U.S. stance,” he added. Reuters

As Starlink nears regulatory approval in India for satellite broadband services, analysts say a victory there could pave a road into more emerging markets and boost the company’s ambitions to add a million subscribers every year.

There are still legal hurdles to overcome, and competition from companies such as Eutelsat and China’s SpaceSail, which is entering Brazil, Malaysia and Kazakhstan. SpaceX also argues that U.S. regulations put it at a disadvantage against foreign rivals.

But a foothold in India would be a potential $25 billion boon for Starlink, helping it reshape that country’s satellite broadband industry and making an attractive case to other developing markets, experts say.

“Starlink securing the contract serves both as a strategic PR victory and a demonstration that it has successfully navigated challenges that seemed insurmountable for most other operators. From Starlink’s perspective, India is not only a credibility boost but also a crucial test of its economic feasibility in emerging markets,” said independent satcom specialist Davis Mathew Kuriakose.

Elon Musk’s SpaceX-owned satellite internet network has been waiting since 2022 for licenses to operate commercially in India, locked in a regulatory impasse over spectrum allocation. Starlink did not respond to an email seeking comment.

The standoff saw Starlink clash publicly with Mukesh Ambani’s Reliance Jio and Sunil Mittal’s Bharti Airtel over whether India should auction satellite broadband spectrum – favouring existing telecom players – or allocate it administratively, which would benefit newer entrants such as Starlink.

India decided in October it would allocate the bandwidth.

In a surprise development this month, Mittal’s Airtel and Ambani’s Jio signed separate agreements with SpaceX to bring Starlink services to India, a move industry insiders say signals that regulatory hurdles may soon clear.

Goldman Sachs forecasts that low Earth orbit (LEO) subscription fees, which include broadband and mobile services, will get dramatically cheaper, with prices dropping from $148 per month in 2023 to about $16 per month by 2035. Goldman also estimates the global satellite market will surge from $15 billion to at least $108 billion by 2035.

Space-focused financial firm Quilty Space projects Starlink will add 3 million subscribers globally in 2025, with 1 million coming from Asia, its director of research Caleb Henry said.

“India will be the biggest contributor to Starlink’s Asia subscriber growth once authorized,” Henry said.

‘A seat at the table’
Six industry experts interviewed by Reuters noted that SpaceX’s revenue gains in India will depend on its pricing strategy.

Three of them expect Starlink to offer competitive broadband plans, potentially starting at $15 a month — a price point designed to challenge India’s existing market, where basic plans start at about $12.

“There’s always going to be a subset of the market willing to pay a premium for convenience. India is an aspirational market, and the brand value of having a Starlink connection is also an added edge,” said Vivek Prasad, principal analyst for space and satellite at consulting firm Analysys Mason.

Starlink operates in more than 120 markets with varying levels of regulatory complexity, including spectrum coordination requirements.

The company’s deals with Reliance and Airtel need final regulatory clearances but were signed just weeks after Prime Minister Narendra Modi met Musk in Washington — an interaction that analysts say may have helped smooth the way.

Approval in India would give Starlink a leg up on any rivals hoping to enter that country, said three industry executives who declined to be named because of business sensitivities.

“India’s satellite internet market is just coming up, with a potential addressable market of some 700 million customers. Starlink gets a seat at the table to influence how that market develops,” said one senior executive.

India’s space regulator and the department of telecoms did not immediately respond to an email seeking comment on Starlink’s license approval.

The SatCom Industry Association – India said Starlink’s entry would foster growth in the sector.

“This will fuel employment growth in satellite network operations, ground stations, equipment manufacturing, and rural broadband services, while enhancing the global competitiveness of Indian space startups collaborating with international players,” the industry body said. Reuters