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India To Allocate Satellite Spectrum Administratively, Impacting Reliance Jio

In September, TRAI released a consultation paper seeking industry input on how to price satellite spectrum for commercial services.

Starlink project
Starlink project

Starlink vs Jio: Union Communications Minister Jyotiraditya Scindia announced that India will administratively allocate spectrum for satellite communications, a decision that poses a setback to Reliance Jio, which has been advocating for an auction-based allocation process. This move is seen as a win for Jio’s competitors, particularly Elon Musk’s Starlink, which supports administrative allocation.

Global Standards for Satellite Spectrum Allocation

Unlike terrestrial spectrum, satellite spectrum operates on an international level and is managed by the United Nations’ International Telecommunications Union (ITU). Scindia emphasized that satellite spectrum is administratively allocated worldwide, and India is following global norms. He also pointed out that auctioning satellite spectrum would be impractical, as satellite services operate across borders and share the spectrum.

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The Telecommunications Act of 2023 includes satellite communication spectrum in its list for administrative allocation, and the Department of Telecommunications (DoT) has tasked the Telecom Regulatory Authority of India (TRAI) to devise a methodology for assigning this spectrum.

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Ambani vs Musk: The Debate Over Spectrum Allocation

In September, TRAI released a consultation paper seeking industry input on how to price satellite spectrum for commercial services. Reliance Jio, in response, argued that administrative allocation would not create a level playing field between satellite and terrestrial services. Jio expressed surprise that TRAI had overlooked this issue in its paper, potentially impacting the fairness of recommendations and competition.

Elon Musk countered Jio’s position, stating that auctioning satellite spectrum would be unprecedented, given the ITU’s long-standing designation of the spectrum as shared.

Airtel’s Position: A Shift in Stance?

Bharti Airtel’s chairperson, Sunil Bharti Mittal, stirred debate by suggesting that companies offering satellite services in urban areas should be required to buy spectrum and follow the same licensing rules as terrestrial telecom companies. This appeared to contradict Airtel’s earlier stance, where its subsidiary, OneWeb, had advocated for administrative allocation in 2021 to promote investment.

Despite Mittal’s comments, Airtel clarified that its position remains unchanged: satellite operators looking to serve urban areas and retail customers must go through regular licensing, pay spectrum fees, and meet regulatory obligations. Airtel emphasized that terrestrial and satellite operators can continue to work harmoniously to bridge the digital divide.

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HISTORY

Written By

Aniket Raj


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