Coming through the auction model, Jio had disrupted the telecom sector when it entered the market with its lucrative free unlimited calls and high-speed internet plans in 2016. As per reports, average internet usage per month increased to 11GB from 700 MB due to Jio’s impact. The penetration of internet increased from 9 per cent in 2015 to 25 per cent in 2018 which warrants some credit to Jio’s low-cost services.
However, while Jio consolidated the market in its favour, several other telecom operators, including international networks, were forced to shut shops. Aircel, Telenor and Docomo left the market while Vodafone was forced to merge with Idea. If the government goes ahead with the auction route for satellite, it could allow one player to monopolise the sector which might hinder the entry of foreign players like Starlink.
For the government to realise its vision of ‘Digital India’, it needs to improve internet connectivity. Satellite broadband provides an opportunity to bridge the digital divide which became acutely evident when India went through the Covid-19 pandemic. Now, the ball is in DoT’s court to prioritise connectivity in a manner that ensures equitable access—whether it achieves it through auction route or the administrative allocation will decide the king of Indian telecom industry.