The Department of Telecommunications (DoT) will ask the Telecom Regulatory Authority of India (Trai) to begin fresh consultations on allocating spectrum for satellite-based broadband services, a government official said.
The official said the previous consultation process on the matter would not be taken forward in light of the enactment of the new telecom law. He added that the government's focus through the consultation is to ensure that the level-playing field in the telecom market is not disturbed due to satcom services for which spectrum will be given through an administrative route at fair pricing.
“Trai has returned the previous reference in light of the new law, and discussions with the industry have occurred. The terms of reference are being finalised. The fresh reference will be sent in a few weeks. Trai will give its recommendations on the mechanism of allotment, the frequencies and the pricing, among other things,” the official said on condition of anonymity.
As part of the consultation process, the department will request fresh recommendations from Trai on the pricing and methodology of spectrum allocation.
The upcoming consultations will also involve refining existing licences to provide clear guidelines on the services that satcom companies with administratively allocated spectrum can offer.
The Telecommunications Act, 2023, allows satellite communication companies to obtain spectrum without auction for point-to-point communications. However, the provisions permitting VSAT operators to provide internet services to multiple independent subscribers may be interpreted differently than intended in the Telecommunications Act and hence there is a need to fine-tune VSAT licences, the official said.
The regulator had previously initiated consultations on assigning spectrum for satcom services in April 2023, but returned the reference to DoT following the announcement of the new Telecommunications Act.
Satcom technology enables internet connectivity in remote areas or challenging terrains, and several companies, including Bharti Group-backed OneWeb, Reliance Group's Jio Satcom, and Elon Musk-owned Starlink, have shown interest in providing these services in India.
Eutelsat OneWeb and Jio Satellite Communications have secured GMPCS (Global Mobile Personal Communication by Satellite Service) licences from the telecom department. Eutelsat OneWeb is currently the only company to have secured approval from IN-SPACe (Indian National Space Promotion and Authorisation Centre) and received trial satellite spectrum in both the `Ka’ and `Ku’ bands for 90 days.
Any entity that wants to offer satcom services in India must get approvals from IN-SPACe, a GMPCS licence, and spectrum from DoT.
Eutelsat OneWeb, Starlink, Jio Satellite Communications and Amazon are vying for a portion of the burgeoning Indian market, which has significant growth prospects.
Spectrum for mobile services will continue to be offered through auctions in India, and administrative allocation of airwaves will only be done for limited use cases, including communication for space and satellite applications, Moneycontrol reported on April 23.
On April 22, the government sought an urgent hearing from a Supreme Court bench led by Chief Justice of India DY Chandrachud, seeking clarification on whether the government could allocate airwaves administratively through a legal process in cases of sovereign functional requirements, public interest, or cases where auctions are not the preferred mode of assignment due to technical or economic factors.
The Supreme Court had said in 2012 that competitive auctions would be the route to be taken for distributing natural resources owned by the public. A Presidential reference by the central government also followed the judgement.
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