TRAI Plans 5-Year Satellite Spectrum Allocation, Defying Starlink’s 20-Year Demand: Report

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.”

Also Read: Starlink Set for Faster Regulatory Approvals in India After Airtel, Jio Tie-Ups