India is set to allocate spectrum to the satcom (satellite communication) companies. The wait is now for the Telecom Regulatory Authority of India (TRAI) to give recommendations on the rules for spectrum allocation for the satcom players. TRAI chairman has said that they will release the recommendations "very soon", according to a PTI report. The government will then evaluate the rules, which will pave the way for satcom companies and their business in the country.
The recommendations from the telecom regulatory will play a major role in deciding the future of the satcom sector in India. The satcom companies have requested the government for an administrative allocation, which is what the government wants as well. However, the private telcos in India want the spectrum to be given via an auction to maintain transparency. This is what is causing a huge battle and confusion in India. That is what TRAI's recommendations will clear for the government.
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Final Call Will be Made by Government
Ultimately, it will be the call of the government over what to do. For now, government has multiple times indicated that it is not feasible to allocate the spectrum via an auction to the satcom companies. That is not the global practice either. Elon Musk has also voiced his opinion on the matter and indicated that he appreciates the government's decision to go for administrative allocation.
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Unlike the telcos, satellite companies don't want exclusive right over a certain band from the auction. The spectrum is shared by the satcom companies and thus bidding for those airwaves doesn't make any sense. Bharti backed Eutelsat OneWeb and Jio-SES are the only two companies to have received the necessary licenses to start the satcom services in India.
