India's telecom regulator, the Telecom Regulatory Authority of India (TRAI), plans to recommend a five-year allocation of satellite broadband spectrum to assess market adoption, rejecting Starlink's demand for a 20-year permit, Reuters reported, citing a senior government source. The move aligns with the positions of Reliance Jio and Bharti Airtel, which had advocated for shorter allocation periods of three to five years. This decision allows the government to reassess spectrum pricing and market dynamics before making long-term commitments
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Support for a Shorter Term Allocation
According to the report, TRAI is formulating key recommendations for the federal government, outlining the timeline and pricing for the administrative allocation of satellite spectrum.
While Starlink, backed by Elon Musk, had pushed for a 20-year allocation to ensure long-term pricing stability, Reliance sought for a three-year term to allow for periodic market reassessment. Bharti Airtel, another Indian telecom company, has supported a three-to-five-year period. Airtel has also signed a distribution deal with Starlink, similar to Jio Platforms Limited.
However, TRAI believes a shorter timeframe will help monitor sector growth and stabilise competition. TRAI plans to agree to demands for a lower licence time-frame "of around 5 years and then see how the sector grows," the senior government source reportedly said, adding, "This will help understand how the market stabilises, so there's no point going beyond five years."
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Government's Strategy for Market Assessment
The satellite spectrum will be allotted administratively, unlike traditional telecom licenses that are auctioned for 20 years. This could provide satellite broadband firms with cheaper access to airwaves, intensifying competition with existing telecom players.
The report quoted an industry source familiar with licensing processes as saying that the shorter time-frame will allow New Delhi to revise spectrum prices after five years as the market develops.
The government source reportedly added that it will take about a month for the TRAI to finalise its recommendations on the licence timeframe and a per-megahertz spectrum pricing, which will then be submitted to India's telecoms ministry for further action.
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India's Satellite Broadband Industry
Meanwhile, Starlink's recent distribution deals with Airtel and Reliance remain subject to pending regulatory clearances.
The satellite spectrum pricing "will be substantially lower" than traditional telecom licences, which are granted via auction for 20 years, the government official added, as per the report.
According to KPMG, India's satellite communication sector is projected to grow over tenfold, reaching USD 25 billion by 2028.
