In a recent announcement, Communications Minister Jyotiraditya Scindia confirmed that India will allocate satellite spectrum through an administrative process rather than the auction method favored by industry leaders Mukesh Ambani of Reliance Industries and Sunil Mittal of Bharti Airtel. The decision aligns with global practices, aiming to foster growth in the satellite broadband sector while adhering to international norms. However, the spectrum will come at a regulated cost set by the Telecom Regulatory Authority of India (TRAI), rather than being provided for free.
Following Global Norms: ITU and Satellite Spectrum
Scindia pointed out that India’s approach follows the guidelines of the International Telecommunication Union (ITU). A United Nations agency responsible for setting policies on digital technology. ITU policy favors administrative allocation over auctions, a practice embraced by most countries worldwide. “Every country has to follow the ITU, which sets policy for spectrum allocation in space and satellites,” Scindia said. “Globally, countries do not auction spectrum for satellites, and India is no exception.”
Telecom Giants Argue for Auctions
The decision contrasts sharply with the position of major telecom players like Reliance Jio and Bharti Airtel. Who argue that satellite spectrum should be auctioned to ensure fair competition. These companies have invested heavily in infrastructure for terrestrial networks, often at auctioned spectrum prices, and now seek a level playing field in the emerging satellite broadband market. During the India Mobile Congress (IMC) 2024, Sunil Mittal stressed the need for similar regulatory treatment between satellite and terrestrial spectrum, suggesting that satellite broadband providers should also secure airwaves through bidding processes to ensure fairness.
Reliance Jio has consistently advocated for auctioning satellite spectrum, expressing concern that administrative allocation would disadvantage traditional telecom operators who have already invested in fiber and telecom towers to provide comprehensive service coverage.
Starlink and Project Kuiper Back Administrative Allocation
On the other side of the debate are global satellite players like Elon Musk’s Starlink and Amazon’s Project Kuiper, both of which support the administrative allocation of satellite spectrum. Starlink has already applied for a license to enter the Indian market and is urging the government to follow the international model of non-auctioned spectrum distribution. These companies argue that the administrative model allows for a more seamless rollout of satellite broadband services and aligns with how most countries manage their satellite spectrum.
Transparency in Regulation
Minister Scindia underscored that the government’s approach will be clear and fair under India’s new Telecom Act, passed in December 2023. The Act formally includes satellite spectrum allocation in its provisions, specifically designating it under “Schedule 1” for administrative allocation. This framework, he noted, aims to maintain transparency in the regulatory process, ensuring that all stakeholders are informed and protected. Scindia’s comments emphasize that the government is committed to establishing a robust and competitive satellite broadband market, which could ultimately broaden access to internet services across India.
A Strategic Decision for Satellite Broadband Growth
India’s decision to administratively allocate satellite spectrum reflects a commitment to fostering a burgeoning satellite broadband industry. While traditional telecom players may view the policy as a departure from the auction-based approach, the government’s stance aligns with international practices and prioritizes regulatory clarity and efficiency.
As Starlink and Project Kuiper gear up to enter the Indian market, the administrative allocation of satellite spectrum is likely to play a key role in shaping the future of connectivity in India, especially in remote and underserved areas. At the same time, telecom operators like Reliance Jio and Bharti Airtel may need to adjust their strategies as the satellite broadband market opens up to more players under this new regulatory framework.
With India on the cusp of a satellite broadband revolution, the chosen approach aims to balance growth, transparency, and adherence to global standards, setting the stage for expanded connectivity nationwide.