India has opted for administrative allocation of satellite spectrum over auctions, benefiting competitors like Starlink amidst a battle with Jio. The international nature of satellite communication complicates auctioning, as governed by the ITU. The rise of satellite services is predicted, which may significantly enhance connectivity in remote areas as it grows substantially in revenue by 2028.
India has recently rejected Reliance Jio’s suggestion to auction satellite communication airwaves, opting instead for administrative allocation. This decision is perceived as favorable to Jio’s competitors, particularly Starlink, the satellite service led by Elon Musk. The ongoing discourse reflects a larger global challenge—auctioning satellite spectrum is impractical due to its international nature, a reality governed by the International Telecommunications Union (ITU). The 2023 Telecommunications Act in India has included satellite communication spectrum for administrative allocation. Consequently, the Department of Telecommunication (DoT) requested the Telecom Regulatory Authority of India (TRAI) to develop an effective methodology for spectrum assignment. Jio has advocated for an auction model, contending that administrative allocation lacks the potential for a competitive balance between satellite and terrestrial services. However, Musk has highlighted the uniqueness of this spectrum, which is shared among satellite operators as per ITU regulations. Satellite communication services utilize an array of orbiting satellites to facilitate connectivity, representing an alternative to terrestrial network services like cables or DSL. They promise extensive coverage and a more resilient infrastructure, benefiting areas with limited access to traditional communication networks. Despite latency issues, satellite services are likely to improve overall connectivity in rural areas and regions frequently affected by disasters. KPMG has projected a significant growth trajectory for India’s satellite communication sector, estimating it may rise from $2.3 billion per year to $20 billion by 2028. India ranks fourth globally in terms of investments in satellite communication, presenting a profitable opportunity for satellite operators, especially considering the sizable untapped market of approximately 290.4 million households without broadband access. The distinction between terrestrial and satellite spectrum management is critical. Terrestrial spectrum is exclusive, non-sharable among operators in a specific area. Conversely, satellite spectrum can be employed by multiple operators in the same geographic region, leading to a general preference for administrative allocation. Some countries, like the USA, Brazil, and Saudi Arabia, have experimented with auctions but found them inefficient, opting for administrative assignments instead. The United States last auctioned satellite spectrum in 2004, after which it discontinued the practice, recognizing the unfeasibility of the process. Brazil adopted similar changes in 2020, shifting from auctions to administrative licensing for satellite services. Saudi Arabia has recently conducted limited auctions for certain bands, but these remain exclusive to specific services, again demonstrating the ineffectiveness of broader auction models for satellite spectrum assignment.
The allocation of satellite spectrum has become a contentious issue, particularly between major players such as Reliance Jio and Starlink. The complexity arises from the international nature of satellite spectrum, which is governed by the ITU and cannot be treated as a national resource. Administrative allocation has gained traction as the preferred method for managing satellite communications in many countries, highlighting the challenges inherent in spectrum auctioning.
In conclusion, India’s decision to administer satellite spectrum rather than auction it has significant implications for the competitive landscape of satellite communications. The administrative approach allows for equitable access to the spectrum among multiple operators while adhering to international norms. Given the projected growth of the sector, this strategy could enhance connectivity across underserved regions, ensuring a more robust satellite communication framework.
Original Source: indianexpress.com
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