Communications Minister Jyotiraditya Scindia said that spectrum for satellite broadband will be allocated rather than auctioned, contrary to the requests of Reliance Industries' Mukesh Ambani and Bharti Airtel's Sunil Mittal. However, the spectrum will not be provided free of charge; the sector regulator, TRAI, will set a price for the resource, according to a PTI report.
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Government Stance on Satellite Spectrum
Elon Musk's Starlink and Amazon's Project Kuiper support administrative allocation of satellite spectrum, aligning with global practices. India is a member of the International Telecommunication Union (ITU), a UN agency for digital technology.
"Every country has to follow the International Telecommunications Union (ITU), which is the organisation that lays out the policy for spectrum in space or satellites, and the ITU has been very clear in terms of the spectrum being given out on an assignment basis. In addition, if you look across the world today, I cannot think of a single country that auctions spectrum for satellite," Scindia said, according to the report.
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Reliance Jio and Bharti Airtel Push for Auction
Reliance Jio has been vocal in advocating for satellite spectrum allocation through auctions to ensure a level playing field for telecom operators, who purchase airwaves and invest in infrastructure such as fiber and telecom towers to provide services. At IMC 2024 in October, Sunil Mittal highlighted the need for satellite spectrum allocation through bidding, arguing that Satcom should be bound by the same regulations as telecom.
Both Bharti Airtel and Reliance Jio argue that providing satellite broadband airwaves at a fixed government price would create an uneven playing field, as they had to compete in auctions to secure spectrum for their terrestrial wireless networks. The two operators are vying for a share of the satellite broadband market.
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Starlink Supports Administrative Allocation
Musk-led Starlink is pushing for administrative allocation of licenses, following global trends, as it seeks to enter the Indian telecom market. Starlink has reportedly applied for a license to start operations in the country.
Scindia reportedly noted that the Telecom Act of 2023, passed in December, has placed the issue in 'Schedule 1,' meaning that the Satcom spectrum will be allocated administratively.
Scindia Emphasises Transparency
According to the report, the minister emphasised that the regulatory process is clear and transparent. "The new Telecom Act has been passed, and the Satellite spectrum is very clearly a part of that in schedule one," he noted.
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"...Therefore, we are open to looking at the application of any entity that wants to invest in India at this point in time. I think only one or two licenses have been given out. And whoever else wants to participate, India is surely going to welcome that," the minister added, according to the report.
