Satellite spectrum battle: Ambani calls for auction; Musk backs allocation | Company News

The Telecom Regulatory Authority of India (Trai) is currently conducting a public consultation on the matter. In a private letter dated October 10, Reliance requested the process be restarted, claiming that Trai has “pre-emptively interpreted” the circumstances in favour of allocation rather than auction.

“Trai seems to have concluded, without any basis, that spectrum assignment should be administrative,” wrote Kapoor Singh Guliani, a senior regulatory affairs official at Reliance, in his correspondence with Union Telecom Minister Jyotiraditya Scindia.

Trai’s consultation paper suggests that Indian laws necessitate the allocation of spectrum for such services without conducting extensive studies. However, Reliance’s letter has not been made publicly available.

The recommendations from Trai will significantly influence the government’s final decision on spectrum allocation. Deloitte forecasts that India’s satellite broadband market will expand at an annual rate of 36 per cent, potentially reaching $1.9 billion by 2030.

Therefore, Musk is eager to launch Starlink in India, but the unresolved issues surrounding spectrum allocation pose a substantial hurdle. Starlink is asking for administrative licensing, asserting that it aligns with global methodology. Reliance, however, argues that auctions are necessary to ensure a fair playing field, particularly as foreign competitors may enter the voice and data services market.

Ambani takes the matter to Scindia

 

Reliance Jio, boasting 480 million users, is the leading telecom provider in India. To advance the issue, Reliance Jio has formally urged Union Minister Jyotiraditya Scindia to auction satellite spectrum and reissue Trai’s consultation paper to facilitate fair competition between satellite communications and traditional networks.

In its letter dated October 10, Jio emphasised that various global satellite constellations — including Starlink and Amazon Kuiper — are seeking spectrum and market access rights in India, positioning themselves to offer mobility services that will compete directly with terrestrial networks.

“Given that terrestrial networks acquire spectrum through auctions for mobile and fixed wireless access, a fair and transparent auction system for satellite services is essential for level competition,” Jio mentioned.

This correspondence follows a similar request made to Trai chairman AK Lahoti, where Jio sought revisions to the consultation paper on spectrum pricing, arguing that the issue of ensuring a level playing field has been overlooked.

Broadband forum rejects Ambani’s call

 

The Broadband India Forum (BIF), which includes members such as OneWeb and Amazon, has rejected Jio’s call for a level playing field, claiming it reflects a misunderstanding of both technology and law.

However, in its letter, Jio pointed out that the Department of Telecommunications (DoT) had referenced the need for a level playing field when consulting Trai, yet the regulator has not addressed this vital concern.

“We respectfully request your [Scindia] intervention so Trai addresses these issues in its consultation paper and ensures that its recommendations on spectrum assignment uphold fairness, transparency, and competition as mandated by the Telecommunications Act and Supreme Court rulings,” Jio urged.

Additionally, Jio noted that the DoT has not prescribed a specific methodology for spectrum assignment, leaving the matter open for discussion under Section 4 of the Telecommunications Act. “Trai seems to have concluded, without any basis, that spectrum assignment should be administrative and based on a ‘first-come, first-served’ approach,” Jio mentioned.

First Published: Oct 14 2024 | 12:22 PM IST