Jio, Airtel seek fair satellite spectrum rules as Starlink eyes India entry

Indian telecom giants Reliance Jio and Airtel have urged the government to ensure fair competition in the satellite communications sector as it finalises decisions on licensing and spectrum allocation for Elon Musk’s Starlink, The Times of India reported.

 

The telcos have called for satellite operators to be charged ‘comparable’ spectrum fees to avoid what they describe as ‘market distortions’.

 

In a representation to the government, the telcos criticised the Telecom Regulatory Authority of India (Trai) for not addressing the disparity between satellite and terrestrial spectrum allocation. The petition said that satellite service providers operating in urban, semi-urban, and rural markets should be subject to spectrum pricing, regulatory levies, and fees similar to those imposed on terrestrial telecom operators, the news report said.

   

Under the telecom law enacted in December 2023, satellite spectrum can be assigned administratively for a fee, whereas terrestrial spectrum is allocated through auctions. However, Trai is still working on the specifics of pricing and distribution.  

 

Jio and Airtel have expressed concerns about low-earth orbit (LEO) mega-constellations, arguing that their broadband speeds and capacity rival those of terrestrial networks. The petition warned that the excess broadband capacity these satellite providers introduce could disrupt competition, particularly in urban and semi-urban markets serving retail and enterprise customers, the news report said.

 

Telcos resist spectrum allocation

The telcos acknowledged that satellite spectrum should be allocated administratively at lower costs for non-commercial applications such as government operations, disaster recovery, cellular backhaul, and sectors like defence, maritime, and aviation. However, they maintain that commercial satellite operators should not benefit from preferential pricing.  

 

Despite these concerns, the government remains committed to assigning satellite spectrum without auctions. Telecom Minister Jyotiraditya Scindia defended the approach, emphasising the fundamental differences between terrestrial and satellite networks.

 

“As far as terrestrial networks are concerned, you can allocate frequencies exclusively, which can’t be used by others... but satellite spectrum is shared. How do you auction something that’s shared? You can’t,” he said.

 

Meanwhile, Starlink’s satcom licence application is still under review, awaiting security clearances. According to The Times of India report, company representatives are in discussions with the Department of Telecommunications and the Ministry of Home Affairs as the approval process nears completion.

 

Starlink’s India entry

Elon Musk's Starlink, a satellite broadband service, is set to enter India. However, its entry has sparked debates over spectrum allocation and regulatory policies.

 

Starlink’s technology relies on low earth orbit (LEO) satellites to provide internet, making it ideal for remote areas lacking traditional infrastructure. With thousands of satellites in operation, it has the potential to enhance India’s connectivity.  

 

Spectrum allocation for satellite broadband has been contentious. Telecom giants like Jio and Airtel pushed for auctions to ensure fair competition and maximise government revenue, while Starlink favoured administrative allocation to reduce costs. The Centre opted for administrative allocation, aligning with International Telecommunications Union (ITU) standards. This benefits Starlink but raises concerns among local telecom players who invest heavily in auctions.  

 

Starlink’s entry also brings geopolitical and security concerns. The Centre mandates data from its satellites to terminate within the country, ensuring data sovereignty. The Ministry of Home Affairs is reviewing these security issues before granting final approval.  

 

With Starlink’s arrival, competition with local telecom firms could intensify, potentially leading to a price war. While its services are typically costlier, its pricing strategy in India remains uncertain.