Competition Heats Up Over Satellite Broadband Spectrum Pricing in India
The discussion around the pricing of satellite broadband spectrum in India’s telecommunications sector has gained significant attention, with major players like Reliance Jio, Airtel, and Elon Musk’s Starlink competing fiercely in this domain.
A New Administrative Approach Raises Questions
Following the approach used by many other countries, the Indian government has decided to allocate satellite communication (satcom) spectrum through direct administrative allocation instead of auctioning it. This decision has raised questions about whether this approach will create opportunities or challenges for companies.
Union Minister of Communications Jyotiraditya Scindia stated that the methods for spectrum allocation would be finalized by the Telecom Regulatory Authority of India (TRAI). This indicates that TRAI will play a crucial role in shaping the future of satellite broadband services in the country.
Reliance Jio and Airtel: Intense Competition
Both Reliance Jio and Airtel have invested substantial sums to acquire satellite spectrum, spending around ₹5.5 lakh crore. Through this investment, both companies aim to become leading providers of satellite broadband services in India.
For Airtel, this is the first time the group is venturing into the satcom sector, directly competing with Jio. This has introduced a new dimension to India’s telecommunications market, as Jio strives to secure spectrum across the nation while Airtel is also making efforts to strengthen its position in the satellite sector.
Global Players Seek Market Entry
Global companies like Starlink and Amazon’s Kuiper are also looking to enter the Indian broadband market. However, these companies must comply with India’s security regulations to gain the necessary permissions to operate. As a result, they are still awaiting approval to obtain licenses for satellite broadband services in the country.
Future Market Growth
India’s satellite communication market is projected to grow by 36% annually over the next five years. By 2030, the market is expected to reach a valuation of $1.9 billion, underscoring the importance of satellite broadband services in the country’s telecommunications sector.
TRAI’s Role and Upcoming Developments
The Cellular Operators Association of India (COAI) has emphasized the need for “same service, same rules” to ensure fair competition in the market. This policy aims to create a level playing field for all companies operating in the satellite communications sector.
Meanwhile, TRAI is expected to release its recommendations on satellite broadband soon. An open discussion on the issue is scheduled for November 8, which could provide much-needed clarity on spectrum allocation and pricing.
Conclusion
The competition among satcom companies in India’s satellite broadband sector calls for clear regulations. The government’s approach to administrative allocation and the entry of new players into the market will bring about significant changes in the country’s telecom industry.
As satellite communication, broadband services, and spectrum allocation continue to be critical aspects of the Indian telecom sector, the future growth and sustained success of this industry are highly anticipated.
