Telecom Vs Satcom: Policy Battle Heats Up Over Spectrum Pricing

The clash between traditional telecom operators and satellite players is intensifying.

In the latest development, the Broadband India Forum—backed by global tech giants like Meta, Google, Amazon, and Intel—has come out in strong support of TRAI’s recommendations on satellite spectrum pricing. In a letter to Telecom Secretary Neeraj Mittal, BIF defended the regulator’s proposal and pushed back against the objections raised by the Cellular Operators Association of India.

COAI, which represents major telecom firms like Airtel, Jio, and Vodafone Idea, has argued that TRAI’s pricing for satellite spectrum is too low, demanding the same regulatory treatment for both satellite and terrestrial networks.

BIF, however, counters that satellite and terrestrial technologies are complementary, not competitive. It emphasised that satellite connectivity is essential for rural and remote areas, where terrestrial networks fall short. Notably, it pointed out that telecom companies like Airtel and Jio themselves have partnered with satellite providers like Starlink—highlighting the evolving synergy between the two sectors.

The Forum also underscored the economic disparity—while the terrestrial telecom sector generates over Rs 3.36 lakh crore annually, the satcom segment is currently valued at just Rs 600 crore. Yet, satellite spectrum costs remain significantly higher on a per-user basis.

BIF warned that applying terrestrial norms to the nascent satellite sector could stifle innovation and deter investment—especially as players like Starlink and Amazon’s Kuiper gear up for Indian launches.

TRAI is yet to issue its final pricing guidelines, leaving the debate wide open on whether India adopt a one-size-fits-all policy, or tailor its approach to unlock the full potential of both technologies.