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

Communications Minister Jyotiraditya Scindia hit back at Congress leader Jairam Ramesh and explained in a social media post on Tuesday as to why satellite spectrum cannot be auctioned and has to be assigned through administrative process. His post was in response to an earlier post by Ramesh, who lamented the government's decision to this effect.

The Minister of State for Communications Pemmasani Chandra Shekhar, in response to Ramesh's question, told the Lok Sabha that satellite spectrum will be allocated through an administrative process, as listed in the First Schedule of the Telecommunications Act, 2023.

The provision defines the administrative process as the one where spectrum is allocated without holding an auction.

Satellite spectrum—an inherently shared one—can not be auctioned due to technical and operational reasons as it cannot be allocated to a single entity at the level it exists on, Scindia said in the video clip attached to his post.

Satellite spectrum in the Ku band (around 14 GHz) and Ka band (27.1 to 31 GHz) is shareable in nature, Scindia wrote. Thus, it is neither desirable nor feasible to allocate it through auction, he added.

In contrast, terrestrial spectrum can be allocated and used by a single entity, and hence can be auctioned, he said.

However, failing to assign satellite spectrum will be detrimental to the nation, the Union Minister further further reasoned. "Given that satellite spectrum is highly under-utilised, failing to assign it would result in two key disadvantages: potential loss of government revenue, and missed opportunities to advance technologically, which could help bridge the digital divide."

He also underlined that no country in the world currently auctions satellite spectrum.

In his response to the Ramesh's question in the Parliament, Chandra Sekhar said that Department of Telecommunications has sought recommendations from Telecom Regulatory Authority of India on terms and conditions of satellite spectrum assignment. These will include spectrum pricing in respect of licensees intending to provide satellite-based communication services while accounting for level-playing field with terrestrial access services. The telecom regulator is in the process of finalising these recommendations.

Earlier this month, Scindia had said that satellite spectrum will not be allocated on a first-come-first-serve basis.