• India will allocate satellite spectrum administratively instead of through auctions, following global practices.
  • Local telecom giants Reliance Jio and Bharti Airtel prefer auctions, arguing it would ensure a “level playing field.”

India has decided to allocate satellite spectrum for communication services through administrative means rather than auctions, marking a crucial development in the ongoing debate over spectrum allocation. The decision, announced by Communications Minister Jyotiraditya Scindia, aligns with global practices, as he explained:

“Spectrum for satcomm is shared spectrum, and cannot be auctioned. The administrative allocation of satellite spectrum is practiced worldwide.”

The move paves the way for Elon Musk’s Starlink and Amazon’s Project Kuiper to enter India’s telecom market. Both companies have advocated for shared spectrum allocation, believing it to be the most efficient means of expanding satellite broadband services. India, the world’s most populous country, still has about 490 million people without internet access, highlighting the need for innovative solutions like satellite broadband, especially in areas lacking infrastructure.

However, local telecom giants, including Reliance Jio and Bharti Airtel, oppose this method. Mukesh Ambani-led Reliance Jio and Sunil Mittal of Bharti Airtel favor spectrum auctions, arguing it would create a “level playing field” for all players. Mittal emphasized that satellite companies should “take the telecom licenses like everybody else” and purchase spectrum accordingly.

Jio and Airtel have also been developing their satellite broadband capabilities to compete with global entrants. Jio’s joint venture with SES, Orbit Connect, and Airtel’s OneWeb India subsidiary have both received regulatory approvals to operate in India’s satellite broadband market.

Despite the push from local telcos, Scindia reaffirmed India’s stance:

“Satellite spectrum across the world is allocated administratively. So, India is not doing anything different from the rest of the world.”

With this decision, India seeks to bridge its digital divide while setting the stage for competition among local and global players in its expanding telecom market.

Edited by Harshajit Sarmah