The PHD Chamber of Commerce and Industry (PHDCCI) has sought a revised consultation paper on satellite spectrum, saying the one released in September fails to ensure a level playing field with terrestrial networks and overlooks the telecom department’s terms of reference.
In the absence of measures to ensure fairness between satellite and terrestrial access services, the consultation process could fall foul of Article 14 of the Constitution, leading to discrimination and compromising the right to equality, PHDCCI executive director Ranjeet Mehta has said in a letter to TRAI chairman Anil Kumar Lahoti.
“We are concerned that any recommendations derived from a consultation paper that does not fully address the issue of level playing field may also negatively impact investment, invite legal scrutiny, and potentially drag the industry towards unnecessary litigations,” Mehta said in a letter dated October 9. Moneycontrol has reviewed a copy of the letter.
The consultation paper was released in September.
Addressing concerns about level playing field is essential to shape terms and conditions for spectrum assignment transparently and non-discriminatorily, he said.
The industry body has urged the
Telecom Regulatory Authority of India to issue a revised consultation paper to ensure a fair play for satellite as well as terrestrial access services.
“The principle of a level playing field is fundamental in a capital-intensive industry like telecommunications, where equitable access to resources, such as spectrum, is crucial for fostering investment, promoting competition, and driving innovation,” Mehta said.
The success of the Digital India initiative relies on a fair and balanced regulatory framework, where both satellite-based and terrestrial stakeholders have equal access to resources and opportunities, he said.
The sector could lose its attractiveness to investors, and the broader goal of Digital India — building a connected and digitally empowered nation — may be at risk.
The industry body’s concerns align with those of Reliance Jio, which, too, wrote to Lahoti, seeking a review of the consultation paper, saying it overlooked the telecom department’s terms of reference, which call for a level playing field with terrestrial networks.
In its October 4 letter to the TRAI chairman, Jio said the paper overlooked the critical issue of ensuring a level playing field between satellite-based and terrestrial access services. Stakeholders will need help to adequately consider and provide relevant input to the regulator, Jio said, undermining the fairness of recommendations and the government intent to promote balanced competition.
“This deviation makes the consultation paper and the consequent recommendations vulnerable to legal challenges, particularly since it fails to address the issues outlined in the DoT's reference, such as ensuring a level playing field,” the letter said. “Both auction and administrative assignment methods should remain open for stakeholders' input, with due consideration given to competitive fairness.” Moneycontrol has reviewed a copy of the letter.
The consultation paper favoured administrative spectrum allocation, which contradicts the new telecom law that designates auctions as the default method for assigning spectrum for commercial services, it said.
Jio has consistently maintained that satellite communication services directly compete with terrestrial services, and therefore, the spectrum should be auctioned. However, the new telecom law lists satellite broadband communications in the First Schedule, exempting the spectrum needed for such services from being assigned through auctions.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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