India’s decision to allocate satellite spectrum through administrative means, bypassing the auction method, appears to favor global players like Elon Musk’s Starlink and Amazon’s Project Kuiper. Communications Minister Jyotiraditya Scindia confirmed the administrative allocation process for satellite services, emphasizing that such a move aligns with global practices, where satellite spectrum is treated as shared, not auctioned.
The issue has sparked a debate in India’s telecom sector, where established operators like Reliance Jio and Bharti Airtel advocate for auctions. Mukesh Ambani’s Reliance Jio and Sunil Mittal’s Bharti Airtel argue that an auction would ensure a level playing field, requiring satellite providers to buy spectrum licenses like other telecom operators. Airtel stated that maintaining harmony between mobile and satellite operators was critical for extending connectivity to underserved areas.
Starlink, on the other hand, supported the administrative route, with Musk warning against auctions, calling them “unprecedented” for satellite spectrum. His stance is in line with the International Telecommunication Union (ITU) guidelines, which designate satellite spectrum as shared. Musk’s entry into India’s lucrative market holds the potential to bring new satellite broadband options to millions of unconnected Indians, a market where 490 million people, or roughly a third of the population, remain offline.
Satellite broadband, although costlier than traditional mobile services, presents a viable option for reaching remote and underserved regions, where terrestrial infrastructure is lacking. Jio and Airtel, both dominant players in India’s telecom industry, have also been exploring satellite broadband for months. Jio’s joint venture with SES, called Orbit Connect, received regulatory approval earlier this year, and the company launched its satellite broadband service, JioSpaceFiber, in 2022. Similarly, Airtel’s subsidiary, OneWeb India, part of Eutelsat OneWeb, gained approval to roll out satellite services in the region.
While Jio and Airtel argue that administrative allocation could benefit new entrants, the Indian government has consistently leaned toward this method for satellite spectrum. The country’s telecom law, enacted last year, allows for administrative allocation as an exception for satellite communications, with the Telecom Regulatory Authority of India recently releasing a consultation paper to explore pricing methodologies for satellite spectrum.
This decision to allocate spectrum administratively could pave the way for Starlink and Amazon to expand their services in India’s broadband market, potentially challenging the dominance of Jio and Airtel. However, the debate over auctions versus administrative allocation is far from settled, as established operators continue to push for a system they believe will safeguard competition in the fast-evolving satellite broadband space.
Featured image courtesy of tele.net
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