Satcom Spectrum will be Distributed in an Administrative Manner: Scindia

Nitin Konde, Varun Bhardwaj

Oct 17, 2024 — 3 min read

Satcom Spectrum Distribution via Administrative Manner Scindia

On October 15, Jyotiraditya Scindia, Minister of Communications of India, made clear the government's position on the satellite spectrum issue. According to him, spectrum would be distributed administratively rather than through auction, and service providers would be responsible for a fee.

In response to a query at a media briefing at India Mobile Congress, Scindia stated that satellite spectrum will be distributed administratively as per the very clear allocation stated in Schedule 1 of the Telecom Act 2023, which was passed in December of last year.

However, Scindia made it clear that radiowaves, even if allocated for satellite-based communications services without an auction, will still incur costs. However, this does not imply that spectrum is free. Trai will determine that cost and its methodology, he reiterated.

"The constitution gives our regulating body for telecommunications the authority to decide what the administrative pricing will be. Scindia continued, "I have no doubts that they will determine the appropriate plan of action as long as they handle the pricing administratively."

This essentially means that the request to auction off satellite airwaves by Reliance Jio, Bharti Airtel, and other service providers remains unfulfilled. Scindia made these remarks just hours after Reliance Jio and Sunil Bharti Mittal, the founder and chairman of Bharti Airtel, joined forces to demand the distribution of satellite service spectrum in a manner similar to that of telecom companies.

Airtel and Jio Worries

To ensure level competition, both telecom companies have pursued a transparent and equitable auction procedure for satellite services. Jio has demanded that the way that Indian satellite communication firms are allotted spectrum be changed. Jio expressed concerns about fair competition with established cellular providers and asked for a reexamination of the current proposal in a letter dated October 10 to Telecom Minister Jyotiraditya Scindia.

In direct competition with land-based mobile networks, Elon Musk's Starlink, Amazon's Kupier, OneWeb Eutelsat, funded by Bharti Group, and the SES-Jio joint venture have all indicated interest in offering their services in India.

Jio underlined that, like traditional telecom operators, satellite businesses like Starlink and Amazon's Kuiper should purchase spectrum through an open auction procedure and pay license rates that are comparable to those of current telecom providers. At the India Mobile Congress, Sunil Mittal, the chairman of Bharti Airtel, reiterated this idea by saying that satellite companies providing services in cities have to take part in spectrum auctions. In addition, Airtel restated its position and released a letter it sent in March to the telecom department.

Musk Describes the Sale as "Unprecedented"

Musk responded on October 14 to Reliance Jio's alleged action urging the government to hold a transparent auction of satellite airwaves. According to Musk, that would be exceptional because the ITU (International Telecommunication Union) has long defined this wavelength as a shared spectrum for satellites. Similar remarks were made by Scindia, who stated that satellite spectrum is administratively distributed worldwide.

"India is acting in the same manner as the rest of the globe. On the other hand, if you choose to auction, you are acting in a way that sets you apart from the rest of the world," he opined.