Reliance Jio, India's second-largest telecom operator, has written to TRAI (Telecom Regulatory Authority of India) to revise its consultation paper on satellite spectrum pricing. Jio believes that the paper doesn't promote a level playing field between terrestrial and satellite network service providers. In addition to this, the regulator's decision to support the administrative allocation of airwaves has been questioned by the telecom operator. The private telcos have opposed the notion of administrative allocation of spectrum for satellite players. They believe that spectrum should only be given to the companies via an auction route if they plan to use it for commercial purposes.
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However, the satcom companies have long argued that an auction route doesn't fit well for their business plans in the country and is also not a global practice for the satcom sector. According to ET, Jio wrote to TRAI that this consultation paper and its consequent recommendations are vulnerable to legal challenges, particularly since it fails to address the issue outlined in DoT's reference, such as ensuring a level playing field.
DoT had told TRAI that it is important to examine whether a level playing field exists or not. Jio doesn't want the satellite companies to get spectrum administratively as it would be unfair for the telcos. Telcos have to compete for the limited spectrum with the other companies and sometimes pay elevated prices due to bidding. However, here the satcom companies, also engaged in communication services would get access to the spectrum at administrative prices, which could be significantly lower than what the telcos have to pay for it.
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The satcom sector in India hasn't yet started because the policies are still not clear about what's supposed to happen.
