Telecom minister Jyotiraditya Scindia has given blow to Indian telecos, including Reliance and Airtel, who have been advocating for the auction method
Union minister of communications Jyotiraditya Scindia said that spectrum for satellite broadband will be allocated administratively and not through a bidding process. Speaking at the India Mobile Congress event on Tuesday, the minister cited the Telecommunications Act 2023 and global practices to back his stance on spectrum allocation.
“For satcom, spectrum will be allocated administratively...that does not mean that spectrum does not come without a cost. What that cost is and what the formula of that costing is going to be...will be decided by the TRAI,” said Scindia. Satellite spectrum across the globe is allocated administratively, and India is taking the same route, he added.
Elon Musk, who is soon planning to enter the Indian market by launching his company Starlink, praised the Indian government in a post on X for their support for administered allocation of spectrum.
“Much appreciated! We will do our best to serve the people of India with Starlink,” said Musk in a post on Wednesday.
The minister’s move to bat for the allocation method came after Bharti Enterprises chairman Sunil Bharti Mittal pitched for the auction method. Hinting at foreign players like Elon Musk’s Starlink and Amazon’s Project Kuiper, eyeing the Indian market, he said the government should ensure a level playing field for all players. Additionally, he also said that the government should ensure all SATCOM providers adhere to the same legal framework as done by traditional operators, including the payment of license fees.
“Satellite operators who want to provide services to urban areas and retail customers indeed need to go through the regular licensing process of any country, and in this case, India, to obtain a license; buy the spectrum; undertake all the obligations, including rollout and security; pay their license fees and taxes and they would be welcomed by the telecom fraternity,” said Airtel in a statement.
Sunil Mittal isn’t the first Indian telecom giant head who has backed the bidding method for SATCOM allocation; earlier Reliance Jio advocated for the same.
Moreover, Reliance, in a letter addressed to the telecom regulatory authority of India (TRAI) chairman Anil Kumar Lahoti on October 14, asked the regulator to revise the consultation paper on a proposed spectrum allocation rule released on September 27.
The key issue pointed out by Reliance was TRAI’s failure to provide a level playing field between satellite-based and terrestrial access services. In the letter, the telecom giant cited the Supreme Court judgement in the 2G case and hinted towards a legal battle that might surface if concerns remain unresolved.