Reliance Jio, India’s leading telecom operator with 480 million subscribers, is contesting the Telecom Regulatory Authority of India’s (TRAI) decision to administratively allocate satellite broadband spectrum to satellite telecom services like SpaceX’s Starlink. Reliance Jio argues that this spectrum should be auctioned to ensure a level playing field, as foreign players like Starlink could compete directly with local LTE providers by offering voice and data services.
Musk described the process to auction this spectrum as “unprecedented”, referring to the International Telecommunication Union (ITU), noting that the spectrum designated for satellite use has long been shared and should continue to be allocated in a way that prevents interference and promotes efficient use.
Broadband India Forum (BIF), an independent policy forum and think-tank dedicated to the development and enhancement of the broadband ecosystem in India, supports the administrative allocation of satellite broadband spectrum. They argue that this method is more suitable for satellite-based services compared to auctions, which are typically used for terrestrial telecom services. BIF members include international telecom providers such as AT&T and Amazon.
The Debate Over Spectrum Allocation
The controversy centers around the method of spectrum allocation. Traditionally, the Department of Telecommunications (DoT) in India conducts auctions to allocate spectrum licenses, a process that promotes transparency and allows telecom operators to bid for various frequency bands. This method has been in place since 1994 and is used for both mobile and broadband services.
However, certain frequency bands, especially those used for satellite broadband, may be allocated administratively. This approach is often adopted to promote specific technologies or services. Companies like SpaceX’s Starlink and Amazon’s Project Kuiper support administrative allocation, arguing it facilitates quicker deployment of satellite broadband services. In contrast, traditional telecom operators like Reliance Jio advocate for auctions to ensure fair competition.
Reliance Jio’s Stand
In a private letter dated October 10, as reported by Reuters, Reliance Jio requested TRAI to restart the public consultation process. The letter, written by Kapoor Singh Guliani, Reliance’s senior regulatory affairs official, criticized TRAI for “pre-emptively interpreting” that administrative allocation is the preferred method. Guliani emphasized that TRAI’s conclusion lacks a solid basis and called for a fresh review.
Regulatory Framework
The International Telecommunication Union (ITU) governs the global use of satellite spectrum through its Radio Regulations. National bodies like the FCC in the U.S. and the DoT in India implement these regulations locally, deciding whether to conduct auctions or administrative allocations based on national interests.
In India, the telecom spectrum is managed by the DoT, which has conducted numerous auctions since 1994. These auctions allow telecom companies to bid for spectrum licenses across 22 telecom circles, ensuring nationwide service availability. The most recent significant auction was for 5G spectrum in August 2022, where Reliance Jio emerged as the highest bidder, acquiring 24,740 MHz of spectrum.
Starlink, the satellite broadband service offered by Elon Musk’s SpaceX, has received in-principle approval from the Telecom Ministry for satellite communications services in India. This approval is a crucial step towards obtaining a Global Mobile Personal Communication by Satellite (GMPCS) license, which is necessary for offering satellite communication services in the country. The final approval is pending vetting by the Home Ministry, which is reviewing security concerns and ownership declarations to ensure compliance with Indian regulations
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