Satcom Spectrum Allocation in India Will Incur Costs, Says Telecom Minister Jyotiraditya Scindia

Telecom Minister Jyotiraditya Scindia has dismissed the demand from service providers to auction satellite communication spectrum. However, he clarified that even if these radiowaves are assigned without an auction, there will still be a cost involved. Earlier, Bharti Airtel's founder Sunil Bharti Mittal joined Reliance Jio in requesting spectrum allocation for satellite services similar to telecom players.

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The Telecom Act 2023, passed last December, specifies in Schedule 1 that satcom spectrum will be allocated administratively. Scindia stated, "What that cost is and what the formula of that cost is going to be will not be decided by you and me but it will be decided by Trai." This was in response to telecom operators' demands for auction-based allocation.

Regulatory Authority's Role in Pricing

Scindia emphasised the role of the regulatory authority, empowered by the constitution, in determining administrative pricing. He expressed confidence that they would establish appropriate pricing for spectrum allocated administratively. On September 27, 2024, Trai initiated a consultation process to explore methods and pricing for assigning spectrum to satellite companies for various services.

Reliance Jio recently sought Scindia's intervention for Trai to issue a revised consultation paper on spectrum allocation rules. They aim to ensure a level-playing field between terrestrial and satellite players. In a letter dated October 10, Jio highlighted potential legal issues if Trai fails to address level-playing field concerns.

Industry Stakeholders and Competition

Reliance Jio's letter mentioned interest from companies like Elon Musk's Starlink, Amazon's Kuiper, Bharti Group-backed OneWeb Eutelsat, and SES-Jio joint venture in providing services in India. These companies would compete with land-based mobile networks, necessitating a fair auction system for satellite services to ensure competitive balance.

During the India Mobile Congress inauguration, Mittal stated that satellite firms aiming to serve urban areas must purchase spectrum like telecom companies. He noted that those entering urban markets should adhere to the same licensing conditions as telecom operators.

Airtel's Position on Satcom Services

Airtel issued a statement affirming its commitment to using all technologies, including satcom, for nationwide high-speed broadband coverage. The company has partnered with Eutelsat OneWeb, which has a LEO constellation, to offer satcom services in India and Africa.

Airtel highlighted that satellite operators targeting urban areas must follow India's regular licensing process. They need to obtain licenses, purchase spectrum, meet obligations like rollout and security, and pay fees and taxes. Airtel believes mobile and satcom operators can continue collaborating to improve internet connectivity.

Global Practices in Spectrum Allocation

Scindia pointed out that globally, satellite spectrum is allocated administratively. He remarked that India is aligning with international practices by not opting for auctions. He explained that shared spectrum above 7-8 GHz poses challenges for individual pricing, which is why most countries follow this model.

The minister noted that auctioning would deviate from global norms. He stressed the complexity of decision-making in spectrum allocation and reiterated India's adherence to established international models.