TRAI Turns Down COAI’s Plea to Revisit Satcom Spectrum Recommendations

According to reports, TRAI turned down the COAI's request to examine its suggestions for satcom spectrum. Following a thorough and open consultation process, the Centre has received recommendations pertaining to spectrum.

Telecom companies disregarded TRAI's suggestion earlier this month that satellite spectrum be billed at 4% of AGR. According to reports, the Cellular Operators Association of India (COAI) asked the Telecom Regulatory Authority of India (TRAI) to review its satcom spectrum proposals, but the TRAI denied the request, stating that the consultation process was comprehensive and open.

According to a media report that cited sources, the Centre received the spectrum recommendations following a thorough and open consultation procedure. All stakeholders had plenty of opportunity to voice their opinions throughout the consultation.

The TRAI's recommendation that satellite spectrum be priced at 4% of adjusted gross revenue (AGR) was apparently disregarded by major telecom companies just days prior. The TRAI's spectrum pricing action was seen by the telcos to be unjustly cheap and predicated on false assumptions.

TRAI Not Providing Level-Playing Field: COAI

A few days ago, the COAI, which is made up of Bharti Airtel, Reliance Jio, and Vodafone Idea (Vi), wrote to DoT Secretary Neeraj Mittal to argue that TRAI's recommendations do not provide equal opportunities for satellite operators and conventional terrestrial service providers.

The TRAI's pricing change, according to telecom businesses, would unfairly benefit satellite providers while jeopardising the viability of conventional terrestrial services.

Satellite firms contend that the regulator's plan for differential pricing for satellite spectrum is meant to equalise the playing field between satcom and terrestrial broadband providers, refuting telecom companies' assertions to the contrary.

They view higher spectrum fees and varying pricing for urban and rural areas as ways to establish competitive parity.

Because of the capacity and latency benefits of satellite services, satcom providers see the regulator's actions as a means of ensuring competitive fairness between satellite and terrestrial services, according to media sources.

TRAI’s Response

The TRAI responded that its recommendations were the outcome of a comprehensive consultation process that incorporated input from a diverse array of industry actors, such as satellite operators, telecommunications service providers, and other stakeholders.

The agency claimed that by increasing connectivity alternatives, their strategy will eventually benefit consumers by promoting innovation and competition. Given the ongoing evolution of satellite communication, the ruling is anticipated to have a substantial impact on India's telecom environment.

Terrestrial network providers are expected to keep pushing for regulations that safeguard their market position, even though satellite operators may appreciate TRAI's clarity.

All eyes will be on the sector as it navigates these changes to see how India's quickly changing digital economy maintains a balance between innovation, competition, and fair market practices.