Telecom Minister Says Satellite Spectrum Will Not Be Auctioned But...

Currently, Starlink tariff plans cost approximately double the average fixed broadband plans across markets.

Currently, Starlink tariff plans cost approximately double the average fixed broadband plans across markets. (Photo Source: Starlink Website)

Telecom Minister Jyotiraditya Scindia confirmed On Tuesday that spectrum for satellite-based services will not be auctioned. This is against the demands of incumbents like Reliance Jio and Bharti Airtel, which have acquired spectrum through an auction process.

Clarifying the issue, the government also informed the Lok Sabha recently that the assignment of spectrum for satellite-based services is not to facilitate entry of Elon Musk owned Starlink in India. It explained that as per the Telecommunication Act, 2023 assignment of spectrum for satellite services is part of the first schedule of the act.

The government has also confirmed that it will earn revenue from administratively assigned satellite spectrum as it is chargeable. More importantly, the government in its response also stated it has sought a recommendation from the Telecom Regulatory Authority of India on terms and conditions of spectrum assignment including spectrum pricing in respect of licenses intending to provide satellite-based communication services while accounting for 'level playing field' with terrestial services.

During the consultation process, both Jio and Bharti sought the pricing to provide level playing field to terrestial spectrum operators.

Also Read: Scindia Schools Ramesh — Explains Why Satellite Spectrum Can't Be Auctioned

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Due to limited penetration of broadband, both Airtel and Jio have started providing 5G Fixed Wireless Access. This is expected to address contraints like last mile fibre and Right of Way.

The TRAI consultation paper sought stakeholder views for both FSS (Fixed Satellite Service) as well as MSS (Mobile Satellite Service).

According to industry estimates, the average hardware cost for Satellite interent is $300-400 with monthly outgo at nearly $40-50 in developed and some emerging markets.

Currently, the tariff plans of Starlink cost around double the average fixed broadband plans across markets. This compares to free installation of fixed Broadband or Fixed Wireless Access in India with monthly plans at $10-13.

The premium price plan and costly Customer Premise Equipment of satellite communications required for high-speed data connectivity will make it difficult for satellite-based services to become a mainstream in the medium term in India.

Also Read: Fraud Detection System Saves Public Assets Worth Rs 2,500 Crore, Says Scindia

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WRITTEN BY
Sajeet Manghat
Sajeet Kesav Manghat is Executive Editor at NDTV Profit. He is a graduate i... more
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