The central government will allocate satellite spectrum through administrative means, a significant move that could reshape the country's telecommunications landscape and potentially accelerate the entry of global players like Elon Musk’s Starlink and Amazon’s Project Kuiper. The clarification was made by Communications Minister Jyotiraditya Scindia, who said that satellite spectrum is shared and should not be auctioned, aligning with international practices.
This statement follows a long-standing debate between telecom operators and satellite companies over how the spectrum should be distributed. The administrative approach, which involves setting a price and offering spectrum on a first-come, first-served basis, has been championed by satellite providers who argue that it is a standard method worldwide.
Scindia reiterated that auctioning satellite spectrum would be an unprecedented move, while administrative allocation has been the global norm.
The move is seen as a win for companies like Starlink and Project Kuiper, both of which are eager to enter India’s lucrative telecom market, particularly as the country seeks to bridge its digital divide. With 490 million people still without internet access, satellite broadband is viewed as a promising solution to reach remote areas lacking infrastructure. While generally more expensive than mobile networks, satellite services can provide vital connectivity in underserved regions and bolster existing networks.
However, India's major telecom operators, Reliance Jio and Bharti Airtel, have voiced their opposition to this approach, advocating for a spectrum auction instead. Both companies have already entered the satellite broadband market—Jio through its Orbit Connect venture with Luxembourg-based SES, and Airtel via its OneWeb India subsidiary in collaboration with Eutelsat. These operators argue that administrative allocation could unfairly favour new entrants and undermine their position in the market.
Despite this pushback, the Indian government has held firm, citing the telecom law passed last year, which allows for administrative allocation in cases involving satellite communication. The Telecom Regulatory Authority of India (Trai) has also supported the move, recently releasing a consultation paper to explore pricing for satellite spectrum.
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